Recouping energy costs from cloud tenants: Tenant demand response aware pricing design

Cheng Wang, Neda Nasiriani, George Kesidis, Bhuvan Urgaonkar, Qian Wang, Lydia Y. Chen, Aayush Gupta, Robert Birke

Research output: Chapter in Book/Report/Conference proceedingConference contribution

26 Scopus citations

Abstract

As energy costs become increasingly greater contributors to a cloud provider's overall costs, it is important for the cloud to recoup these energy costs from its tenants for profitability via appropriate pricing design. The poor predictability of real-world tenants' demand and demand responses (DRs) make such pricing design a challenging problem. We formulate a leader-follower game-based cloud pricing framework with the goal of maximizing cloud's profit. The key distinguishing aspect of our approach is our emphasis on modeling both the cloud and its tenants as working with low predictability in their inputs. Consequently, we model them as employing myopic control with short-term predictive models. Our empirical evaluation using tenant trace from IBM production data centers shows that (i) cloud's profit and VM prices are sensitive to the tradeoffs between its energy costs, tenant's demand and DR, and (ii) the cloud's estimation of tenants' demands/DR may significantly affect its profitability.

Original languageEnglish (US)
Title of host publicatione-Energy 2015 - Proceedings of the 2015 ACM 6th International Conference on Future Energy Systems
PublisherAssociation for Computing Machinery, Inc
Pages141-150
Number of pages10
ISBN (Electronic)9781450336093
DOIs
StatePublished - Jul 14 2015
Event6th ACM International Conference on Future Energy Systems, e-Energy 2015 - Bangalore, India
Duration: Jul 14 2015Jul 17 2015

Publication series

Namee-Energy 2015 - Proceedings of the 2015 ACM 6th International Conference on Future Energy Systems

Other

Other6th ACM International Conference on Future Energy Systems, e-Energy 2015
CountryIndia
CityBangalore
Period7/14/157/17/15

All Science Journal Classification (ASJC) codes

  • Energy Engineering and Power Technology
  • Fuel Technology

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    Wang, C., Nasiriani, N., Kesidis, G., Urgaonkar, B., Wang, Q., Chen, L. Y., Gupta, A., & Birke, R. (2015). Recouping energy costs from cloud tenants: Tenant demand response aware pricing design. In e-Energy 2015 - Proceedings of the 2015 ACM 6th International Conference on Future Energy Systems (pp. 141-150). (e-Energy 2015 - Proceedings of the 2015 ACM 6th International Conference on Future Energy Systems). Association for Computing Machinery, Inc. https://doi.org/10.1145/2768510.2768541