Selling reserved instances (or virtual machines) is a basic service in cloud computing. In this paper, we consider a more flexible pricing model for instance reservation, in which a customer can propose the time length and number of resources of her request, while in today's industry, customers can only choose from several predefined reservation packages. Under this model, we design randomized mechanisms for customers coming online to optimize social welfare and providers' revenue. We first consider a simple case, where the requests from the customers do not vary too much in terms of both length and value density. We design a randomized mechanism that achieves a competitive ratio @math for both and , which is a improvement as there is usually no revenue guarantee in previous works such as azar2015ec,wang2015selling . This ratio can be improved up to @math when we impose a realistic constraint on the maximum number of resources used by each request. On the hardness side, we show an upper bound @math on competitive ratio for any randomized mechanism. We then extend our mechanism to the general case and achieve a competitive ratio @math for both social welfare and revenue, where @math is the ratio of the maximum request length to the minimum request length and @math is the ratio of the maximum request value density to the minimum request value density. This result outperforms the previous upper bound @math for deterministic mechanisms wang2015selling . We also prove an upper bound @math for any randomized mechanism. All the mechanisms we provide are in a greedy style. They are truthful and easy to be integrated into practical cloud systems.
In this paper, we study the problem of designing new mechanisms for selling reserved instances (also referred to as virtual machines) in cloud computing. Unlike the practice in today's clouds in which users only have a few predefined options to reserve instances (i.e., either 1-year reservation or 3-year reservation), we allow users to reserve resources for any length and from any time point in the future. Our goal is to maximize the social welfare. We propose two mechanisms, one for the case where all the jobs are tight (their lengths are exactly their reservation time intervals), and the other for the more general case where jobs are delayable and have some flexibility on their reservations. Both of the mechanisms are prompt in the sense that the acceptance and the payment for a job is determined at the very moment of its arrival. We use competitive analysis to evaluate the performance of our mechanisms, and show that both of the mechanisms have a competitive ratio of O(ln(kT)) under some mild assumption, where k (res. T) is the maximum ratio between per-instance-hour valuation (res. length) of any two jobs. We then prove that no algorithm can achieve a competitive ratio better than ln(2kT) under the same assumption. Therefore, our mechanisms are optimal within a constant factor.