  New pricing policies are emerging where cloud providers charge resource
provisioning based on the allocated CPU frequencies. As a result, resources are
offered to users as combinations of different performance levels and prices
which can be configured at runtime. With such new pricing schemes and the
increasing energy costs in data centres, balancing energy savings with
performance and revenue losses is a challenging problem for cloud providers.
CPU frequency scaling can be used to reduce power dissipation, but also impacts
VM performance and therefore revenue. In this paper, we firstly propose a
non-linear power model that estimates power dissipation of a multi-core PM and
secondly a pricing model that adjusts the pricing based on the VM's
CPU-boundedness characteristics. Finally, we present a cloud controller that
uses these models to allocate VMs and scale CPU frequencies of the PMs to
achieve energy cost savings that exceed service revenue losses. We evaluate the
proposed approach using simulations with realistic VM workloads, electricity
price and temperature traces and estimate energy savings of up to 14.57%.
