Abstract
Cloud Federation offers Cloud Service Providers (CSPs) the ability to lease excess capacity to other CSPs in need of temporary additional resources such as large amounts of computational and networking power, or storage capacity to meet consumer's insatiable demand requirements. This promise, not only directly contradicts the Cloud Computing principles of scalability and elasticity, but also challenges and undermines the main business interest of CSPs in competition for unrivaled market positioning and industry dominance. In this paper, we provide a new view on Cloud Federation through analyzing its technological and organizational integration challenges and identifying the business incentives required for CSPs to combine their aggregated infrastructures to meet greater business outcomes and increased sustainable profits. Our position is that the Internet of Things (IoT) will be the main business driver and catalyst for Cloud Federation.
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