Authors:
Persefoni Mitropoulou
;
Evangelia FIliopoulou
;
Stavroula Tsaroucha
;
Christos Michalakelis
and
Mara Nikolaidou
Affiliation:
Harokopio University of Athens, Greece
Keyword(s):
Cloud Computing, Infrastructure-as-a-Service, Pricing Models, Hedonic Price Indices.
Related
Ontology
Subjects/Areas/Topics:
Cloud Computing
;
Cloud Computing Enabling Technology
;
Cloud Economics
;
Metering, Pricing, and Software Licensing
;
Platforms and Applications
;
Service Marketing and Management
;
Services Science
Abstract:
Cloud computing is an innovative business model, being developed at a fast pace during the last years, offering many operational and economic benefits to both the demand and the supply side of the ICT market. Infrastructure as a Service (IaaS), which includes control of fundamental computing resources, is expected to be the fastest growing model of public cloud computing. Due to the existence of several IaaS cloud providers, there is increased competition among cloud companies, which develop different pricing models in order to meet the market demand. As a consequence, prices for cloud services are a result of a multidimensional function, shaped by the service’s characteristics. The development of a suitable pricing method, based on an appropriate price index able to capture the market dynamics, is an obvious necessity. The aim of this paper is the construction of such a price index, for the IaaS model, using data from a wide range of cloud providers and a large number of price bundl
es. The hedonic pricing method is used to decompose cloud computing services into their constituent characteristics, obtaining estimates of the contributory value of each resource. According to the results, RAM size, CPU power and subscription turned out to be the most influential factors that shape IaaS pricing.
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