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Pricing schemes for_cloud_computing

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Pricing schemes for_cloud_computing

  1. 1. Pricing Schemes for Cloud Computing: A Theoretical Analysis and Market State-of-the-Art Review by Dan Ma, Yinping Yang, and Jianhui Huang present by Jianhui Huang
  2. 2. Cloud Computing industry is boosting.
  3. 3. What is special about Cloud Computing Services?   service  failure network interruption Time sensitive Service uncertainty
  4. 4. Are the special characteristics shaping price?
  5. 5. An example: Spot Instances provide by Amazon Elastic Computing Cloud (EC2). Hard to keep full load. Spot Instance would be terminated by Amazon
  6. 6. Packing an hour of computing power?
  7. 7. From another angle Sophisticated management tool needed.
  8. 8. Time sensitive: discount
  9. 9. To overcome service uncertainty: Support Service & SLA Support service levels Response time ... Uptime guarantee Penalty term ... Not directly reflected in the tariff for the moment.
  10. 10. Price <ul><ul><li>Conventional nonlinear pricing factors </li></ul></ul><ul><ul><li>Time related factors </li></ul></ul><ul><li>  </li></ul><ul><ul><li>Quality related factors </li></ul></ul>
  11. 11. Service type Unit fee Quantity or usage One time fee Commitment length T1 Waiting time T2 Interrupt risk Sustainability Support service Penalty Conventional nonlinear pricing factors Time related pricing factors Quality related pricing factors Proposed price matrix
  12. 12. Service type Unit fee Quantity or usage One time fee Commitment length T1 Waiting time T2 Interrupt risk Sustainability Support service Penalty Flexible Linux/Windows, Small/Large Fixed e.g., $0.085/hour for small Linux instance Flexible Fixed e.g., $227.5 for 1 year Semi-Flexible 1 year or 3 years Short NA Fixed Annual uptime: %99.95  Flexible Silver or Gold, response within 1 hour to 2 Biz days Fixed 10% Service Credit if uptime not met Example: Reserved Instances of Amazon EC2
  13. 13. <ul><li>In a service category, no matter what type of service with respect to capacity or quality, </li></ul><ul><ul><li>Uptime guarantee is same </li></ul></ul><ul><ul><li>Penalty term is same </li></ul></ul>IaaS SaaS <ul><ul><li>More choices in support services </li></ul></ul><ul><ul><li>Uptime guarantee is often missing </li></ul></ul>
  14. 14. by Andrew Shafer
  15. 15. Price adjustments are frequent. But all of them are on a specific type of service as a whole. Given the dynamic nature of demand over time, real-time instance-level price adjustments are possible. Price shock reflects the change in demand. Economic efficiency needs to be studied.

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