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Service models and pricing schemes for cloud computing

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Abstract

Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources. To ensure large-scale adoption of cloud computing by businesses, several challenges including security, privacy, trust, performance and other quality attributes need to be addressed. Also, as with other utility services, adequate selection of service models and pricing schemes by service providers plays a pivotal role in market expansion. This paper investigates optimal pricing schemes for cloud services. In particular, this paper analyzes two pricing schemes: subscription and pay-per-use pricing models from a provider’s standpoint. Using a theoretical analysis of a simple economic model this paper analyzes the optimal choices of providers and discusses implications on consumer surplus and social welfare.

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Notes

  1. A consumer with higher v i may use more units of service, thus s can be a function of v i . However, it is simply assumed that each consumer uses s units of the service.

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Acknowledgements

This work was supported by the National Research Foundation of Korea Grant funded by the Korean Government (NRF-2012-016673).

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Authors and Affiliations

  1. Department of Business Administration, School of Business and Technology, Seoul National University of Science and Technology, 172 Gongreung 2-dong, Nowon-gu, Seoul, 139-743, Korea

    Se-Hak Chun

  2. Industry and Strategy Department, Samsung Economic Research Institute, 1321-15, Seocho 2-dong, Seocho-gu, Seoul, 137-955, Korea

    Byong-Sam Choi

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  1. Se-Hak Chun
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  2. Byong-Sam Choi
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Correspondence to Se-Hak Chun.

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Chun, SH., Choi, BS. Service models and pricing schemes for cloud computing. Cluster Comput 17, 529–535 (2014). https://doi.org/10.1007/s10586-013-0296-1

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  • DOI: https://doi.org/10.1007/s10586-013-0296-1

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