Pure exchange markets for resource sharing in federated clouds

Cloud Computing is the latest paradigm proposed toward fulfilling the vision of computing being delivered as an utility such as phone, electricity, gas and water services. It enables users to have access to computing infrastructure, platform and software as services over the Internet. The services can be accessed on demand and from anywhere in the world in a quick and flexible manner, and charged for based on their usage, making the rapid and often unpredictable expansion demanded by nowadays' business environment affordable also for small spin‐off and start‐up companies. In order to be competitive, however, Cloud providers need to be able to adapt to the dynamic loads from users, not only optimizing the local usage and costs but also engaging into agreements with other Clouds so as to complement local capacity. The infrastructure in which competing Clouds are able to cooperate to maximize their benefits is called a Federated Cloud. Just as Clouds enable users to cope with unexpected demand loads, a Federated Cloud will enable individual Clouds to cope with unforeseen variations of demand. The definition of the mechanism to ensure mutual benefits for the individual Clouds composing the federation, however, is one of its main challenges. This paper proposes and investigates the application of market‐oriented mechanisms based on the General Equilibrium Theory of Microeconomics to coordinate the sharing of resources between the Clouds in the Federated Cloud. Copyright © 2010 John Wiley & Sons, Ltd.