An optimal dynamic resources partitioning auction model for virtual private networks

In this paper, we consider the problem of optimizing the Internet Service Provider (ISP) profit by providing a periodic Dynamic Partitioning (DP) model for utilizing network resources in the context of Virtual Private Networks (VPN). In literature, Complete Sharing (CS), Complete Partitioning (CP), and Bandwidth Borrowing (BR) techniques have been proposed for resource allocation where the following limitations can be noticed: VPN operators can exaggerate about their required resources, resources might be underutilized, and optimal bandwidth utilization is not guaranteed. To overcome the above limitations, we propose to dynamically partition the resources over different QoS classes through periodic auctions that can reduce the reasoning of exaggeration and maximize the ISP profit. Thus, we formulate our problem based on the Integer Linear Programming (ILP) that allows us to maximize the ISP profit and provides the optimal: (1) set of profitable VPN connections, (2) bandwidth division of each network link among QoS classes, and (3) routing scheme for the accepted demand. Furthermore, the proposed ILP model allows us to study the sensitivity of the ISP profit to a targeted revenue objective.