NDLI: Pricing Cloud Compute Commodities: A Novel Financial Economic Model

Content Provider	IEEE Xplore Digital Library
Author	Sharma, B. Thulasiram, R.K. Thulasiraman, P. Garg, S.K. Buyya, R.
Copyright Year	2012
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.
Starting Page	451
Ending Page	457
File Size	186500
Page Count	7
File Format	PDF
ISBN	9781467313957
DOI	10.1109/CCGrid.2012.126
Language	English
Publisher	Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Publisher Date	2012-05-13
Publisher Place	Canada
Access Restriction	Subscribed
Rights Holder	Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Subject Keyword	Pricing Contracts Investments Computational modeling Mathematical model Quality of service Cloud computing Profit Cloud Resources Pricing Financial Economic Model Depreciation of Resources Quality of Service
Content Type	Text
Resource Type	Article

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1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
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