A Framework for Truthful Online Auctions in Cloud Computing with Heterogeneous User Demands

Auction-style pricing policies can effectively reflect the underlying trends in demand and supply for the cloud resources, and thereby attracted a research interest recently. In particular, a desirable cloud auction design should be (1) online to timely reflect the fluctuation of supply-demand relations, (2) expressive to support the heterogeneous user demands, and (3) truthful to discourage users from cheating behaviors. Meeting these requirements simultaneously is non-trivial, and most existing auction mechanism designs do not directly apply. To meet these goals, this paper conducts the first work on a framework for truthful online cloud auctions where users with heterogeneous demands could come and leave on the fly. Concretely speaking, we first design a novel bidding language, wherein users' heterogeneous requirement on their desired allocation time, application type, and even how they value among different possible allocations can be flexibly and concisely expressed. Besides, building on top of our bidding language we propose COCA, an incentive-Compatible (truthful) Online Cloud Auction mechanism. To ensure truthfulness with heterogenous and online user demand, the design of COCA is driven by a monotonic payment rule and a utility-maximizing allocation rule. Moreover, our theoretical analysis shows that the worst-case performance of COCA can be well-bounded, and our further discussion shows that COCA performs well when some other important factors in online auction design are taken into consideration. Finally, in simulations the performance of COCA is seen to be comparable to the well-known off-line Vickrey-Clarke-Groves (VCG) mechanism [19].