Cloud Asset Pricing Tree (CAPT) elastic economic model for cloud service providers

Soheil Qanbari, Fei Li, Schahram Dustdar, Tian-Shyr Dai

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

4 Scopus citations

Abstract

Cloud providers are incorporating novel techniques to cope with prospective aspects of trading like resource allocation over future demands and its pricing elasticity that was not foreseen before. To leverage the pricing elasticity of upcoming demand and supply, we employ financial option theory (future contracts) as a mechanism to alleviate the risk in resource allocation over future demands. This study introduces a novel Cloud Asset Pricing Tree (CAPT) model that finds the optimal premium price of the Cloud federation options efficiently. Providers will benefit by this model to make decisions when to buy options in advance and when to exercise them to achieve more economies of scale. The CAPT model adapts its structure to address the price elasticity concerns and makes the demand, price inelastic and the supply, price elastic. Our empirical evidences suggest that using the CAPT model, exploits the Cloud market potential as an opportunity for more resource utilization and future capacity planning.

Original languageEnglish
Title of host publicationCLOSER 2014 - Proceedings of the 4th International Conference on Cloud Computing and Services Science
PublisherSciTePress
Pages221-229
Number of pages9
ISBN (Print)9789897580192
StatePublished - 1 Jan 2014
Event4th International Conference on Cloud Computing and Services Science, CLOSER 2014 - Barcelona, Spain
Duration: 3 Apr 20145 Apr 2014

Publication series

NameCLOSER 2014 - Proceedings of the 4th International Conference on Cloud Computing and Services Science

Conference

Conference4th International Conference on Cloud Computing and Services Science, CLOSER 2014
CountrySpain
CityBarcelona
Period3/04/145/04/14

Keywords

  • Asset pricing
  • Cloud computing
  • Cloud federation
  • Cloud price elasticity
  • Financial options

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