Abstract-Large-scale online service providers have been increasingly relying on geographically distributed cloud infrastructures for service hosting and delivery. In this context, a key challenge faced by service providers is to determine the locations where service applications should be placed such that the hosting cost is minimized while key performance requirements (e.g. response time) are assured. Furthermore, the dynamic nature of both demand pattern and infrastructure cost favors a dynamic solution to this problem. Currently most of the existing solutions for service placement have either ignored dynamics, or provided inadequate solutions that achieve both objectives at the same time. In this paper, we present a framework for dynamic service placement problems based on control-and game-theoretic models. In particular, we present a solution that optimizes the desired objective dynamically over time according to both demand and resource price fluctuations. We further consider the case where multiple service providers compete for resource in a dynamic manner, and show that there is a Nash equilibrium solution which is socially optimal. Using simulations based on realistic topologies, demand and resource prices, we demonstrate the effectiveness of our solution in realistic settings
