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This paper suggests a definition of the term Cloud Federation, a concept of service aggregation characterized by interoperability features, which addresses the economic problems of vendor lock-in and provider integration. Furthermore, it approaches challenges like performance and disaster-recovery through methods such as co-location and geographic distribution. The concept of Cloud Federation enables further reduction of costs due to partial outsourcing to more cost-efficient regions, may satisfy security requirements through techniques like fragmentation and provides new prospects in terms of legal aspects.
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