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With the recent growth in the size of cloud computing business, handling theinteractions between customers and cloud providers has become more challenging.Auction theory has been proposed to model these interactions due to itssimplicity and a good match with real-world scenarios. In this paper, weconsider cloud of clouds networks (CCNs) with different types of servers alongwith customers with heterogeneous demands. For each CCN, a CCN manager isdesignated to handle the cloud resources. A comprehensive framework isintroduced in which the process of resource gathering and allocation isaddressed via two stages, where the first stage models the interactions betweencustomers and CCN managers, and the second stage examines the interactionsbetween CCN managers and private cloud providers (CPs). For the first stage, anoptions-based sequential auction (OBSA) is adapted to the examined market,which is capable of providing truthfulness as the dominant strategy andresolving the entrance time problem. An analytical foundation for OBSAs ispresented and multiple performance metrics are derived. For the second stage,two parallel markets are assumed: flat-price and auction-based market. Atheoretical framework for market analysis is provided and the bidding behaviorof CCN managers is described.

A Two-Stage Auction Mechanism for Cloud Resource Allocation