Perceived as a key enabling technology for the future Internet, Network Virtualization (NV) allows an Infrastructure Provider (InP) to better utilize their Substrate Network (SN) by provisioning multiple Virtual Networks (VNs) from different Service Providers (SPs). A key challenge in NV is to efficiently map the VN requests from SPs on an SN, known as the Virtual Network Embedding (VNE) problem. VNE algorithms are typically online in nature. A VN embedding can become suboptimal over time due to the arrival and departure of other VNs as well as due to changes in SN such as failures. One way to mitigate the impact of such dynamism is to periodically reallocate resources for the existing VNs. VNE reallocation can increase an InP’s revenue by decreasing bandwidth consumption and by increasing the possibility of accepting future VNs. In this paper, we study Reallocation of Virtual Network Embedding (ReViNE) problem to minimize the number of over utilized substrate links and total bandwidth cost on the SN. We propose an Integer Linear
Programming formulation for the optimal solution (ReViNEOPT) and a simulated annealing based heuristic (ReViNE-FAST) to solve larger problem instances. Simulation results show that on average our proposed heuristic performs within ~19% of the optimal solution. Moreover, ReViNE-FAST generates more than 2.5× better solutions compared to the state-of-the-art simulated annealing based heuristic for VNE reallocation.