Pricing the Cloud: An Auction Approach

Cloud computing has changed the processing and service modes of information communication technology and has affected the transformation, upgrading and innovation of the IT-related industry systems. The rapid development of cloud computing in business practice has spawned a whole new field of interdisciplinary, providing opportunities and challenges for business management research. One of the critical factors impacting cloud computing is how to price cloud services. An appropriate pricing strategy has important practical means to stakeholders, especially to providers and customers. This study addressed and discussed research findings on cloud computing pricing strategies, such as fixed pricing, bidding pricing, and dynamic pricing. Another key factor for cloud computing is Quality of Service (QoS), such as availability, reliability, latency, security, throughput, capacity, scalability, elasticity, etc. Cloud providers seek to improve QoS to attract more potential customers; while, customers intend to find QoS matching services that do not exceed their budget constraints. Based on the existing study, a hybrid QoS-based pricing mechanism, which consists of subscription and dynamic auction design, is proposed and illustrated to cloud services. The results indicate that our hybrid pricing mechanism has potential to better allocate available cloud resources, aiming at increasing revenues for providers and reducing expenses for customers in practice

Spectrum Matching in Licensed Spectrum

Spectrum sharing is one of the promising solutions to meet the spectrum demand in 5G networks that results from the emerging services like machine to machine and vehicle to infrastructure communication. The idea is to allow a set of entities access the spectrum whenever and wherever it is unused by the licensed users. In the proposed framework, different spectrum provider (SP) networks with surplus spectrum available may rank the operators requiring the spectrum, called spectrum users (SUs) hereafter, differently in terms of their preference to lease spectrum, based for example on target business market considerations of the SUs. Similarly, SUs rank SPs depending on a number of criteria, for example based on coverage and availability in a service area. Ideally, both SPs and SUs prefer to provide/get spectrum to/from the operator of their first choice, but this is not necessarily always possible due to conflicting preferences. We apply matching theory algorithms with the aim to resolve the conflicting preferences of the SPs and SUs and quantify the effect of the proposed matching theory approach on establishing preferred (spectrum) provider-user network pairs. We discuss both one-to-one and many-to-one spectrum sharing scenarios and evaluate the performance using Monte Carlo simulations. The results show that comprehensive gains in terms of preferred matching of the provider-user network pairs can be achieved by applying matching theory for spectrum sharing as compared to uncoordinated spectrum allocation of the available spectrum to the SUs