Reinsurance-Emulated Collaboration Mechanism in Cloud Federation

Shujin Ye, Hai Liu, Yiu Wing LEUNG, Xiaowen CHU

Research output: Chapter in book/report/conference proceedingConference proceedingpeer-review

2 Citations (Scopus)


Cloud federation paradigm can improve cloud service providers' (CSPs) profits by renting their idle resource to other federation members. However, these CSPs have the risk that they cannot fulfill their scalability commitment when some of their customers have large short-term resource demand. To reduce this risk, we design a reinsurance-emulated collaboration mechanism in a broker-based cloud federation. Reinsurance is an insurance policy which transfers all or part of insurance business in order to scatter the risk to other insurers. Similar to insurance companies, in our proposed model, each CSP determines its resource retention for its future demand. We design an exact method to determine each CSP's retention, with the aim of maximizing its expected profit. Once the CSP's retention cannot meet its future demand, it reduces the risk by outsourcing part of the requests to others. After every CSP determines its retention, the broker will make an assignment to maximize the resource utilization so as to reduce the risk of the CSPs. We designed an algorithm to maximize the resource utilization, with a guarantee of not worse than half of the optimal solution. Simulation results show that our proposed algorithm is efficient.

Original languageEnglish
Title of host publicationProceedings - 2017 IEEE 10th International Conference on Cloud Computing, CLOUD 2017
EditorsGeoffrey C. Fox
PublisherIEEE Computer Society
Number of pages6
ISBN (Electronic)9781538619933
Publication statusPublished - 8 Sept 2017
Event10th IEEE International Conference on Cloud Computing, CLOUD 2017 - Honolulu, United States
Duration: 25 Jun 201730 Jun 2017

Publication series

NameIEEE International Conference on Cloud Computing, CLOUD
ISSN (Print)2159-6182
ISSN (Electronic)2159-6190


Conference10th IEEE International Conference on Cloud Computing, CLOUD 2017
Country/TerritoryUnited States

Scopus Subject Areas

  • Artificial Intelligence
  • Information Systems
  • Software


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