DocumentCode :
2321225
Title :
Pricing Cloud Compute Commodities: A Novel Financial Economic Model
Author :
Sharma, Bhanu ; Thulasiram, Ruppa K. ; Thulasiraman, Parimala ; Garg, Saurabh K. ; Buyya, Rajkumar
Author_Institution :
Dept. of Comput. Sci., Univ. of Manitoba, Winnipeg, MB, Canada
fYear :
2012
fDate :
13-16 May 2012
Firstpage :
451
Lastpage :
457
Abstract :
In this study, we design, develop, and simulate a cloud resources pricing model that satisfies two important constraints: the dynamic ability of the model to provide a high satisfaction guarantee measured as Quality of Service (QoS) - from users perspectives, profitability constraints - from the cloud service providers perspectives We employ financial option theory and treat the cloud resources as underlying assets to capture the realistic value of the cloud compute commodities (C3). We then price the cloud resources using our model. We discuss the results for four different metrics that we introduce to guarantee the quality of service and price as follows: (a) Moore´s law based depreciation of asset values, (b) new technology based volatility measures in capturing price changes, (c) a new financial option pricing based model combining the above two concepts, and (d) the effect of age of resources and depreciation of cloud resource on QoS. We show that the cloud parameters can be mapped to financial economic model and we discuss the results of cloud compute commodity pricing for various parameters, such as the age of the resource, quality of service, and contract period.
Keywords :
cloud computing; economics; pricing; profitability; quality of service; Moores law; QoS; asset value depreciation; cloud compute commodity pricing; cloud resource age; cloud resource depreciation; cloud resources pricing model; cloud service providers perspectives; contract period; financial economic model; financial option pricing based model; financial option theory; model dynamic ability; price changes; profitability constraints; quality of service; satisfaction guarantee; users perspectives; volatility measures; Cloud computing; Computational modeling; Contracts; Investments; Mathematical model; Pricing; Quality of service; Cloud Resources Pricing; Depreciation of Resources; Financial Economic Model; Profit; Quality of Service;
fLanguage :
English
Publisher :
ieee
Conference_Titel :
Cluster, Cloud and Grid Computing (CCGrid), 2012 12th IEEE/ACM International Symposium on
Conference_Location :
Ottawa, ON
Print_ISBN :
978-1-4673-1395-7
Type :
conf
DOI :
10.1109/CCGrid.2012.126
Filename :
6217453
Link To Document :
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