Federations among sets of Cloud Providers (CPs), whereby a set of CPs agree to mutually use their own resources to run the VMs of other CPs, are considered a promising solution to the problem of reducing the energy cost. In this paper, we address the problem of federation formation for a set of CPs, whose solution is necessary to exploit the potential of cloud federations for the reduction of the energy bill. We devise a distributed algorithm, based on cooperative game theory, that allows a set of CPs to cooperatively set up their federations in such a way that their individual profit is increased with respect to the case in which they work in isolation, and we show that, by using our algorithm and the proposed CPs' utility function, they are able to self-organize into Nash-stable federations and, by means of iterated executions, to adapt themselves to environmental changes. Numerical results are presented to demonstrate the effectiveness of the proposed algorithm.
We model the cloud federation formation problem using concepts from coalitional game theory by considering the cooperation of the cloud providers in providing the requested VM instances. We design a mechanism that enables the cloud providers to dynamically form a cloud federation maximizing their profit. Furthermore, the mechanism guarantees that the cloud federation structure is stable, that is, the cloud providers do not have incentives to break away from the current federation and join some other federation. A cooperative game with transferable utilities - or simply a TU-game - describes a situation in which players can obtain certain payoffs by cooperation. A solution concept for these games is a function which assigns to every such a game a distribution of payoffs over the players in the game. Famous solution concepts for TU-games are the Shapley value and the Banzhaf value. Both solution concepts have been axiomatized in various ways. An important difference between these two solution concepts is the fact that the Shapley value always distributes the payoff that can be obtained by the grand coalition' consisting of all players cooperating together while the Banzhaf value does not satisfy this property, i.e., the Banzhaf value is not efficient. In this paper we consider the normalized Banzhaf value which distributes the payoff that can be obtained by the grand coalition' proportional to the Banzhaf values of the players. This value does not satisfy certain axioms underlying the Banzhaf value. In this paper we introduce some new axioms that characterize the normalized Banzhaf value. We also provide an axiomatization of the Shapley value using similar axioms.