Pricing and Resource Allocation Optimization for IoT Fog Computing and NFV: An EPEC and Matching Based Perspective

The number of devices connected to the Internet of Things (IoT) is growing at an enormous rate globally. In the next generation networks, distributed fog computing deployments at the network edge can provide computing resources to the users, especially for latency-sensitive applications. Further, the heterogeneous needs of the fifth generation (5G) networks demand the virtualization of network functions, termed as network function virtualization (NFV). Therefore, an integrated NFV and fog computing resource allocation framework for IoT is of prime importance. Accordingly, in this paper, we model the interactions between the data service operators (DSOs) and the authorized data service subscribers (ADSSs) as an equilibrium problem with equilibrium constraints (EPEC), and utilize the alternating direction method of multipliers (ADMM) as a large-scale optimization tool to obtain solutions. This results in the optimization of resource pricing for the DSOs and the amount of resources to be purchased by the ADSSs. Moreover, we propose a many-to-many matching based model to allocate the fog node (FN) resources according to the VNF resource requirements of the ADSSs. Simulation results show the effectiveness of our proposed approach in achieving efficient resource allocation in NFV enabled IoT fog computing.