A Negotiation-Based Resource Allocation Model in IaaS-Markets

Usually, IaaS providers use the inflexible supermarket approach for trading resources: a provider offers a resource for a fixed price and consumers can buy the offered resources without negotiating with the provider (take it or leave it). Another possibility is an auction based approach. Auctions have well defined rules which are necessary to ensure fair and transparent resource allocation. However, these rules are limiting flexibility of consumers and providers. In this paper we present a negotiation based resource allocation mechanism following the offer-counteroffer negotiation protocol paradigm. On the one hand, this allocation mechanisms is similar to the supermarket approach as consumer and provider are able to communicate directly. On the other hand, the approach shows also similarities to auctions as the price is determined in a dynamic way. For justification and evaluation we developed a so called Bazaar-Extension for CloudSim which allows to run negotiations and to develop and simulate new negotiation strategies and market scenarios. Further a negotiation strategy considering basic economical principles is introduced in this paper which was used for an exemplary resource allocation scenario. The scenario shows that negotiation based resource allocation can improve the well-being of consumer and provider.