Authors:
Owen Rogers
and
Dave Cliff
Affiliation:
University of Bristol, United Kingdom
Keyword(s):
Pricing, Derivatives, Energy Market, Electricity Futures.
Related
Ontology
Subjects/Areas/Topics:
Cloud Computing
;
Cloud Computing Enabling Technology
;
Cloud Optimization and Automation
;
Dynamic Capacity and Performance Management
;
Economics (ROI, Costs, CAPEX/OPEX,…)
;
Platforms and Applications
Abstract:
The cost of electricity is a major concern to public providers of cloud computing services. On-demand pricing, common amongst cloud providers, does not aid the provider in planning future demand and therefore purchasing energy at discounted rates. In this paper, we describe a number of advance pricing schemes for cloud computing resources based on provision-point contracts, commonly used by deal-of-the-day websites such as Groupon. We propose three models – Group Provision Points, Contributory Provision Points, and Variable Reward Forwards – that each reward consumers with reduced prices for advance reservations, while allowing providers to make accurate forecasts of energy usage. Furthermore, we show how the schemes are risk-free for the provider, guaranteeing to be at least as profitable as on-demand schemes. We present results from a simulation of the schemes, and compare the results to our analytically derived predictions.