Analyzing the picing models for outsourcing computing services

Yung-Ming Li, Chia Ling Chou

Research output: Contribution to conferencePaper

1 Scopus citations

Abstract

With the prompt emergence of cloud computing service in recent years, the business software outsourcing model is giving way to the service-oriented paradigm. From the economic point of view, the pay-by-demand characteristic of cloud computing has significant advantage over self-own software requiring tremendous upfront development cost and continuous maintaining effort. However, the public cloud computing service operated by external parties does have potential security risk the enterprises may face. In this paper, we utilize a game theoretic model to analyze the pricing strategies for computing services utilizing on-demand and built/licensed business models. We show that the price and revenue of computing service are significantly influenced by the market structure and technological parameters of computing service platform. Our analytical results provide useful business implications and operation strategies for the IT outsourcing computing service market.

Original languageEnglish
StatePublished - 1 Jan 2012
Event16th Pacific Asia Conference on Information Systems, PACIS 2012 - Ho Chi Minh City, Viet Nam
Duration: 11 Jul 201215 Jul 2012

Conference

Conference16th Pacific Asia Conference on Information Systems, PACIS 2012
CountryViet Nam
CityHo Chi Minh City
Period11/07/1215/07/12

Keywords

  • Cloud computing
  • Competition
  • IT outsourcing
  • On-demand model
  • Pricing strategy

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