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Pricing cloud compute commodities: a novel financial economic model


Sharma, B and Thulasiram, RK and Thulasiraman, P and Garg, SK and Buyya, R, Pricing cloud compute commodities: a novel financial economic model, Proceedings of the 12th IEEE/ACM International Symposium on Cluster, Cloud and Grid Computing, 13-16 May 2012, Ottowa, Canada, pp. 451-457. ISBN 978-1-4673-1395-7 (2012) [Refereed Conference Paper]

Copyright Statement

Copyright 2012 IEEE

DOI: doi:10.1109/CCGrid.2012.126


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.

Item Details

Item Type:Refereed Conference Paper
Keywords:cloud computing, computational modeling, contracts investments, mathematical model, quality of service
Research Division:Information and Computing Sciences
Research Group:Distributed computing and systems software
Research Field:Distributed systems and algorithms
Objective Division:Information and Communication Services
Objective Group:Information systems, technologies and services
Objective Field:Information systems, technologies and services not elsewhere classified
UTAS Author:Garg, SK (Dr Saurabh Garg)
ID Code:93839
Year Published:2012
Deposited By:Information and Communication Technology
Deposited On:2014-08-19
Last Modified:2018-02-28

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