Pricing in Infrastructure Clouds – An Analytical and Empirical Examination

Abstract

With the increasing maturity of the cloud computing market, specifically in the Infrastructure as a Service (IaaS) domain, adequate pricing of services has become a crucial success factor for providers. In this work, we take a threefold approach to examine the current situation concerning pricing in the IaaS market. Based on an initial literature review, we find that pay-as-you-go pricing is perceived as the dominant scheme by the scientific community. Based on this notion, we discuss other pricing schemes with respect to their advantages, disadvantages, and challenges for a cloud provider. These results are complemented by an empirical study, in which we identify pay-as-you-go and subscription pricing as the dominant options that are practically applied in the IaaS market today

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