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Vertical Integration Between Providers With Possible Cloud Migration
Abstract
All vertically integrated participants in content provisioning process are influenced by bandwidth requirements. Provisioning of self-owned resources that satisfy peak bandwidth demand leads to network underutilization and it is cost ineffective. Under-provisioning leads to rejection of customers' requests. Vertically integrated providers need to consider cloud migration in order to minimize costs and improve quality of service and quality of experience of their customers. Cloud providers maintain large-scale data centers to offer storage and computational resources in the form of virtual machines instances. They offer different pricing plans: reservation, on-demand, and spot pricing. For obtaining optimal integration charging strategy, revenue sharing, cost sharing, wholesale price is applied frequently. The vertically integrated content provider's incentives for cloud migration can induce significant complexity in integration contracts, and consequently improvements in costs and requests' rejection rate.
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