It is well-known that cloud application performance critically depends on the network. Accordingly, new abstractions for cloud applications are proposed which extend the performance isolation guarantees to the network. The most common abstraction is the Virtual Cluster V C(n, b): the n virtual machines of a customer are connected to a virtual switch at bandwidth b. However, today, not much is known about how to efficiently embed and price virtual clusters. This paper makes two contributions. (1) We present an algorithm called Tetris that efficiently embeds virtual clusters arriving in an online fashion, by jointly optimizing the node and link resources. We show that this algorithm allows to multiplex more virtual clusters over the same physical infrastructure compared to existing algorithms, hence improving the provider profit. (2) We present the first demand-specific pricing model called DSP for virtual clusters. Our pricing model is fair in the sense that a customer only needs to pay for what he or she asked. Moreover, it features other desirable properties, such as price independence from mapping locations.
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