Evaluation of the Dynamic Pricing Model in Cloud

Evaluation of the Dynamic Pricing Model in Cloud

Meetu Kandpal (L. J. Institute of Computer Applications, India) and Kalyani Ashesh Patel (K. S. School of Business Management, Gujarat University, India)
DOI: 10.4018/IJSPPC.2020070102
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Abstract

Many of the companies started moving towards cloud computing because of its characteristics like pay as you go, easy to use, scalable, multi-tenant, secure, etc. There are many cloud providers providing cloud services over the internet. There are number of pricing policies for the user. These pricing policies can be categorised as static and dynamic pricing. This paper represents the enhancement and evaluation of the proposed dynamic resource pricing model for cloud resources based on the consumer behaviour. For model evaluation, one tail two sample t-test has been used. The results show the model will be helpful to the cloud provider for profit maximisation.
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1. Introduction

With rising demand of Cloud computing, in many places like education, medical, banking sector etc, cloud service provides resources to the user over the internet.

According to NIST (National Institute of Standards and Technology):

Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g. Networks, servers, storage, applications and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. (Buyya et al., 2013) Table 1 shows service model of cloud computing architecture. It has three types of services SaaS, PaaS, IaaS (Oza, 2020).

Table 1.
Service model of cloud computing
Service Model NameDescription
Software as a Service (SaaS)Cloud provider delivers its software as a service to be used by the customer on demand.
Platform as a service (PaaS)Provider’s delivers application development tools in addition to services for testing, deploying, hosting and maintaining applications.
Infrastructure as a Service (IaaS)Providers provides users with physical and virtual resources that satisfies the requirement of the user applications in terms of CPU, memory, operating systems and storage

1.1. Pricing Policies

Amazon provides three pricing schemes, namely, on-demand pricing, reserved pricing and auction pricing On-demand pricing is the simplest pricing model in which user is supposed to pay for each launched virtual machine (VM) on hourly basis.Reserved pricing In the reserved pricing user can reserved or subscribed VM for a period of time. Auction pricingwas proposed by Amazon EC2 which whether or not a subscriber obtains the VM depends on the price it offers. It is also known as dynamic pricing.

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