The data centers used to create cloud services represent a significant
investment in capital outlay and ongoing costs. Accordingly,
we first examine the costs of cloud service data centers today. The
cost breakdown reveals the importance of optimizing work completed
per dollar invested. Unfortunately, the resources inside the
data centers often operate at low utilization due to resource stranding
and fragmentation. To attack this first problem, we propose (1)
increasing network agility, and (2) providing appropriate incentives
to shape resource consumption. Second, we note that cloud service
providers are building out geo-distributed networks of data centers.
Geo-diversity lowers latency to users and increases reliability in the
presence of an outage taking out an entire site. However, without
appropriate design and management, these geo-diverse data center
networks can raise the cost of providing service. Moreover, leveraging
geo-diversity requires services be designed to benefit from it. To
attack this problem, we propose (1) joint optimization of network
and data center resources, and (2) new systems and mechanisms for
geo-distributing state.