Capacity allocation and pricing policies for cloud computing service providers

Afghah, R. and Özlük, Ö. and Ünlüyurt, Tonguç (2018) Capacity allocation and pricing policies for cloud computing service providers. In: 48th International Conference on Computers and Industrial Engineering, CIE 2018, Auckland

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The cloud computing is regarded as a paradigm shift in today’s IT world. As cloud computing resources behave like perishable products, revenue management techniques can be applied to increase cloud service provider's total revenue. In this paper, we propose various methods for pricing and capacity allocation. We consider three types of instances offered by the service provider; subscription, on-demand and spot instances. We introduce three allocation and pricing policies and propose different models. We simulate these models on a randomly generated dataset and evaluate the models for different capacities. The results we obtain indicate the sensitivity of revenue to varying policies and demonstrate the potential profit increase for cloud service providers.
Item Type: Papers in Conference Proceedings
Uncontrolled Keywords: Capacity planning; Cloud computing; Pricing; Simulation
Divisions: Faculty of Engineering and Natural Sciences
Depositing User: Tonguç Ünlüyurt
Date Deposited: 10 Jun 2023 15:12
Last Modified: 10 Jun 2023 15:12

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