Fixed and Market Pricing for Cloud Services

Abstract: This paper considers two simple pricing schemes for selling cloud instances and studies the trade-off between them. We characterize the equilibrium for the hybrid system where arriving jobs can choose between fixed or the market based pricing. We provide theoretical and simulation based evidence suggesting that fixed price generates a higher expected revenue than the hybrid system

A framework for allocating server time to spot and on-demand services in cloud computing

Cloud computing delivers value to users by facilitating their access to computing capacity in periods when their need arises. An approach is to provide both on-demand and spot services on shared servers. The former allows users to access servers on demand at a fixed price and users occupy different periods of servers. The latter allows users to bid for the remaining unoccupied periods via dynamic pricing; however, without appropriate design, such periods may be arbitrarily small since on-demand users arrive randomly. This is also the current service model adopted by Amazon Elastic Cloud Compute. In this paper, we provide the first integral framework for sharing the time of servers between on-demand and spot services while optimally pricing spot instances. It guarantees that on-demand users can get served quickly while spot users can stably utilize servers for a properly long period once accepted, which is a key feature to make both on-demand and spot services accessible. Simulation results show that, by complementing the on-demand market with a spot market, a cloud provider can improve revenue by up to 464.7%. The framework is designed under assumptions which are met in real environments. It is a new tool that cloud operators can use to quantify the advantage of a hybrid spot and on-demand service, eventually making the case for operating such service model in their own infrastructures

Analysis of cloud storage prices

Cloud storage is fast securing its role as a major repository for both consumers and business customers. Many companies now offer storage solutions, sometimes for free for limited amounts of capacity. We have surveyed the pricing plans of a selection of major cloud providers and compared them using the unit price as the means of comparison. All the providers, excepting Amazon, adopt a bundling pricing scheme; Amazon follows instead a block-declining pricing policy. We compare the pricing plans through a double approach: a pointwise comparison for each value of capacity, and an overall comparison using a two-part tariff approximation and a Pareto-dominance criterion. Under both approaches, most providers appear to offer pricing plans that are more expensive and can be excluded from a procurement selection in favour of a limited number of dominant providers.Comment: 17 pages, 17 figures, 17 reference