Skip to main content
SpringerLink
Log in

Cost-Efficient Strategy in Clouds with Spot Price Uncertainty

  • Mathematical Game Theory and Applications
  • Published:
Automation and Remote Control Aims and scope Submit manuscript

Abstract

We address a cloud spot bidding problem for user cost optimization. We propose stochastic optimization model to minimize the expected resource rental cost in the presence of spot price uncertainty. The model is based on the well-known full-information best-choice problem. Based on the model, we derive the strategy for cloud spots bidding. The strategy allows to minimize the expected cost for a spot instance in a specific period of time with quality of service guarantee. Our simulation analysis based on realistic settings clearly demonstrates the advantages of the proposed optimization solutions.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  1. Abhishek, V., Kash, I.A., and Key, P., Fixed and Market Pricing for Cloud Services, Proc. of the 7th Workshop Economics of Networks System Computer (NetE-con 2012), IEEE Computer Society, Orlando, 20 March 2012, pp. 157–162.

    Google Scholar 

  2. Alkharif, S., Lee, K., and Kim, H., LSTM Model to Forecast Time Series for EC2 Cloud Price, 16th IEEE Int. Conf. on Dependable, Autonom. and Secure Computing, 16th IEEE Int. Conf. on Pervasive Intelligence and Computing, 4th IEEE Int. Conf. on Big Data Intelligence and Computing, 3rd IEEE Cyber Science and Technology Congress (DASC/PICOM/DATACOM/CYBERSCITECH), 2018, pp. 1085–1088. https://doi.org/10.1109/DASC/PiCom/DataCom/CyberSciTec.2018.00067

    Google Scholar 

  3. Amazon EC2 Spot Instances. http://aws.amazon.com/ec2/spot/

  4. Amazon Elastic Compute Cloud (Amazon EC2), Amazon Inc. http://aws.amazon.com/ec2

  5. Ben-Yehuda, A.O., Ben-Yehuda, M., Schuster, A., and Tsafrir, D., Deconstructing Amazon EC2 Spot Instance Pricing, 2011 IEEE Third Int. Conf. on Cloud Computing Technology and Science (Cloud- Com), Athens, 2011, pp. 304–311. https://doi.org/10.1109/CloudCom.2011.48

    Google Scholar 

  6. Cayley, A., Mathematical Questions with Their Solutions, Educational Times, 1875, no. 23, pp. 18–19. 1875.

    Google Scholar 

  7. Cheng, H.K., Li, Z., and Naranjo, A., Cloud Computing Spot Pricing Dynamics: Latency and Limits to Arbitrage, Inf. Syst. Res., 2016, vol. 27, no. 3, pp. 145–165.

    Article  Google Scholar 

  8. Chhetri, M.B., Lumpe, M., Quoc, B.V., and Kowalczyk, R., On Forecasting Amazon EC2 Spot Prices Using Time-Series Decomposition With Hybrid Look-Backs, 2017 IEEE 1st Int. Conf. on EDGE Computing (IEEE EDGE), Goscinski, A.M. and Luo, M., Eds., 2017, pp. 158–165. https://doi.org/10.1109/IEEE.EDGE.2017.29

    Chapter  Google Scholar 

  9. Javadi, B., Ruppa K. Thulasiram, Rajkumar Buyya Characterizing Spot Price Dynamics in Public Cloud Environments, Future Generation Comput. Syst., 2013, vol. 29, no. 3, pp. 988–999. http://dx.doi.org/10.1016/j.future.2012.06.012

    Article  Google Scholar 

  10. Kaminski, B. and Szufel, P., On optimization of Simulation Execution on Amazon EC2 Spot Market, Simulat. Modelling Pract. Theory, 2015, vol. 58, pp. 172–187.

    Article  Google Scholar 

  11. Karr, A.F., Probability, New York: Springer-Verlag, 1993.

    Book  Google Scholar 

  12. Karunakaran, S. and Sundarraj, R.P., Bidding Strategies for Spot Instances in Cloud Computing Markets, IEEE Internet Comput., 2015, vol. 19, no. 3, pp. 32–40. https://doi.org/10.1109/MIC.2014.87

    Article  Google Scholar 

  13. Kokkinos, P., Varvarigou, T.A., Kretsis, A., Soumplis, P., and Varvarigos, E.A., SuMo: Analysis and Optimization of Amazon EC2 Instances. J. Grid Comput., 2014, vol. 13, pp. 255–274.

    Article  Google Scholar 

  14. Kumar, D., Baranwal, G., Raza, Z., and Vidyarthi, D.P., A Survey on Spot Pricing in Cloud Computing, J. Network Syst. Manage., 2018, pp. 809–856. https://doi.org/10.1007/s10922-017-9444-x

    Google Scholar 

  15. Law, A.M. and Kelton, D.M., Simulation Modeling and Analysis, Boston: McGraw-Hill Higher Education, 1999, 3rd ed.

    MATH  Google Scholar 

  16. Li, Z., O’Brien, L., Ranjan, R., Flint, S., and Zomaya, A., On Cloud Spot Market: An Overview of the Research, First Int. Conf. on Intelligent Cloud Computing (ICC), Al-Saidi, A., Fleischer, R., Maamar, Z., and Rana, O.F., Eds., Muscat, Oman, 2015, pp. 46–61.

    Chapter  Google Scholar 

  17. Mell, P. and Grace, T., The NIST Definition of Cloud Computing, NIST Special Publication 800145, 2011. https://doi.org/10.6028/NIST.SP.800-145

    Book  Google Scholar 

  18. Menache, I., Shamir, O., and Jain, N., On-demand, Spot, or Both: Dynamic Resource Allocation for Executing Batch Jobs in the Cloud, 11th Int. Conf. on Autonomic Computing (ICAC 14), 2014, pp. 177–187. www.usenix.org/conference/icac14/technical-sessions/presentation/menache

    Google Scholar 

  19. Moser, L., On a Problem of Cayley, Scripta Math., 1956, vol. 22, no. 3, pp. 289–292.

    MATH  Google Scholar 

  20. Petcu, D., Consuming Resources and Services from Multiple Clouds, J. Grid Comput., 2014, vol. 12, no. 3, pp. 321–345.

    Article  Google Scholar 

  21. Rohatgi, V.K., An Introduction to Probability Theory and Mathematical Statistics, New York: Wiley, 1976.

    MATH  Google Scholar 

  22. Song, Y., Zafer, M., and Lee, K.-W., Optimal Bidding in Spot Instance Market, Proc. IEEE INFOCOM, 2012, art. no. 6195567, pp. 190–198.

    Google Scholar 

  23. Sowmya, K. and Sundarraj, R.P., Strategic Bidding for Cloud Resources under Dynamic Pricing Schemes, Proc. Int. Symp. on Cloud and Services Computing (ISCOS), 2012, art. no. 6481231, pp. 25–30.

    Google Scholar 

  24. Spot Instance Pricing History Amazon Elastic Compute Cloud. http://docs.aws.amazon.com/AWSEC2/latest/UserGuide/using-spot-instances-history.html

  25. Tang, S., Yuan, J., and Li, X.Y., Towards Optimal Bidding Strategy for Amazon EC2 Cloud Spot Instance, 2012 IEEE 5th Int. Conf. on Cloud Computing (CLOUD), Honolulu, 2012, pp. 91–98. https://doi.org/10.1109/CLOUD.2012.134

    Google Scholar 

  26. Toosi, A.N., Vanmechelen, K., Khodadadi, F., and Buyya, R., An Auction Mechanism for Cloud Spot Markets, ACM Trans. Autonom. Adapt. Sys., 2016, vol. 11, no. 1, art. no. 2, pp. 1–33.

    Article  Google Scholar 

  27. Voorsluys, W., Resource Provisioning in Spot Market-Based Cloud Computing Environments, Melbourne: Univ. Melbourne, Australia, 2014.

    Google Scholar 

  28. Wallace, R.M. et al., Applications of Neural-Based Spot Market Prediction for Cloud Computing, IEEE 7th Int. Conf. on Intelligent Data Acquisition and Advanced Computing Systems (IDAACS), Berlin, 2013, pp. 710–716. https://doi.org/10.1109/IDAACS.2013.6663017

    Google Scholar 

  29. Wang, W., Liang, B., and Li, B., Revenue Maximization with Dynamic Auctions in IaaS Cloud Markets, IEEE/ACM 21st Int. Symp. on Quality of Service (IWQoS), Montreal, 2013, pp. 1–6. https://doi.org/10.1109/IWQoS.2013.6550265

    Google Scholar 

  30. Xu, H. and Li, B., Maximizing Revenue with Dynamic Cloud Pricing: The Infinite Horizoncase, IEEE Int. Conf. on Communications (ICC), Ottawa, 2012, pp. 2929–2933. https://doi.org/10.1109/ICC.2012.6364013

    Google Scholar 

Download references

Funding

This work was partially supported by CONACYT (Consejo Nacional de Ciencia y Tecnologa, Mexico), grant no. 178415.

Author information

Authors and Affiliations

  1. Institute of Applied Mathematical Research of Karelian Research Centre, Russian Academy of Sciences, Petrozavodsk, Russia

    E. E. Ivashko & A. A. Ivashko

  2. Petrozavodsk State University, Petrozavodsk, Russia

    E. E. Ivashko, A. A. Ivashko & G. R. Safonov

  3. CICESE Research Center, Ensenada, Baja California, Mexico

    A. Tchernykh

Authors
  1. E. E. Ivashko
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. A. A. Ivashko
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. G. R. Safonov
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. A. Tchernykh
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding authors

Correspondence to E. E. Ivashko, A. A. Ivashko, G. R. Safonov or A. Tchernykh.

Additional information

Russian Text © The Author(s), 2019, published in Matematicheskaya Teoriya Igr i Ee Prilozheniya, 2019, No. 3, pp. 5–30.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Ivashko, E.E., Ivashko, A.A., Safonov, G.R. et al. Cost-Efficient Strategy in Clouds with Spot Price Uncertainty. Autom Remote Control 81, 731–745 (2020). https://doi.org/10.1134/S000511792004013X

Download citation

  • Received:

  • Revised:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1134/S000511792004013X

Keywords

Search

Navigation