A Heuristic Approach for Capacity Control in Clouds

Cloud resource providers in a market face dynamic and unpredictable consumer behavior. The way, how prices are set in a dynamic environment, can influence the demand behavior of price sensitive customers. A Cloud resource provider has to decide on how to allocate his scarce resources in order to maximize his profit. The application of bid price control for evaluating incoming service requests is a common approach for capacity control in network revenue management. In this paper we introduce a customized version of the concept of selfadjusting bid prices and apply it to the area of Cloud Computing. Furthermore, we perform a simulation in order to test the efficiency of the proposed model.