The Price Is Right: Towards Location-Independent Costs in Datacenters

The performance and cost for tenants in today’s datacenters depends on the location of their virtual machines within the datacenter. However, a tenant’s location is a knob for the provider and is of no interest to the tenant. Hence, this paper argues for location independent tenant costs in datacenters. We show how a change in today’s IaaS offerings, coupled with a simple pricing scheme, can achieve this. We discuss how such a pricing model can be implemented and show that the consequent increase in system throughput can lead to a win-win situation– tenant costs are location independent and lower while provider revenue increases too.