Abstract

Network virtualization (NV) allows multiple heterogeneous virtual networks (VNs) to coexist and operate over the same physical network (PN) infrastructures. Some of the benefits of this advancement include flexibility in VN topologies, heterogeneity in VN technologies, and modularity of network operations. However, there are a few areas, such as resource allocation and economics, which challenge the implementation of NV. In this paper, we first introduce some NV parameters that influence the resource allocation and economics of an NV system. Next, we formulate an economic model for NV using the prey-predator food chain model. This model takes into account the dynamics in an NV system, such as the service, payoff, failure, and competition rates within each VN and PN. The solution point to this model represents the resource strategy of the service provider (SP) given the number of users trying to use its VN, as well as the resource strategy of the infrastructure provider (InP) given the strategy of the VN leasing its PN. In addition, we establish economic models that relate the capacities of the end users, the SP, and the InP. Finally, we provided simulations that show how the prey-predator food chain model fits well on an NV system.

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