File(s) under permanent embargo
Pricing cloud compute commodities: a novel financial economic model
conference contribution
posted on 2023-05-23, 09:11 authored by Sharma, B, Thulasiram, RK, Thulasiraman, P, Saurabh GargSaurabh Garg, Buyya, RIn 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.
History
Publication title
Proceedings of the 12th IEEE/ACM International Symposium on Cluster, Cloud and Grid ComputingEditors
P Balaji, R Buyya, S Majumdar, S PandeyPagination
451-457ISBN
978-1-4673-1395-7Department/School
School of Information and Communication TechnologyPublisher
Institute of Electrical and Electronics EngineersPlace of publication
United States of AmericaEvent title
12th IEEE/ACM International Symposium on Cluster, Cloud and Grid ComputingEvent Venue
Ottowa, CanadaDate of Event (Start Date)
2012-05-13Date of Event (End Date)
2012-05-16Rights statement
Copyright 2012 IEEERepository Status
- Restricted