Pricing cloud compute commodities: a novel financial economic model
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conference contribution
posted on 2025-01-15, 01:18authored byB Sharma, RK Thulasiram, P Thulasiraman, Saurabh GargSaurabh Garg, R Buyya
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.
History
Publication title
Proceedings of the 12th IEEE/ACM International Symposium on Cluster, Cloud and Grid Computing
Volume
53
Editors
P Balaji, R Buyya, S Majumdar, S Pandey
Pagination
451-457
ISBN
978-1-4673-1395-7
Department/School
Information and Communication Technology
Publisher
Institute of Electrical and Electronics Engineers
Publication status
Published
Place of publication
United States of America
Event title
12th IEEE/ACM International Symposium on Cluster, Cloud and Grid Computing
Event Venue
Ottowa, Canada
Date of Event (Start Date)
2012-05-13
Date of Event (End Date)
2012-05-16
Rights statement
Copyright 2012 IEEE
Socio-economic Objectives
220499 Information systems, technologies and services not elsewhere classified