An Economic Model for Maximizing Profit of a Cloud Service Provider

Author

Thanakornworakij, T. ; Nassar, R. ; Leangsuksun, C.B. ; Paun, Mihai

Author_Institution

Coll. of Eng. & Sci., Louisiana Tech Univ., Ruston, LA, USA

fYear

2012

Firstpage

274

Lastpage

279

Abstract

For Infrastructure-as-a-Service, Cloud service providers, such as Amazon EC2 and Rackspace, allow users to lease their computing resources over the Internet, and invest their money into developing and maintaining the infrastructure. Hence, maximizing profit, right pricing, and rightsizing are vital elements to their business. To address these issues, we propose in this article an economic model for cloud service providers that can be used to maximize profit based on right pricing and rightsizing in the Cloud data centre. Total cost is a key element in the model and it is analyzed by considering the Total Cost of Ownership (TCO) of the Cloud.

Keywords

cloud computing; computer centres; economics; investment; pricing; probability; profitability; Amazon EC2; Internet; Rackspace; SLA; cloud TCO; cloud data centre; cloud service provider; computing resources; economic model; infrastructure development; infrastructure maintenance; infrastructure-as-a-service; investment; probabilistic model; profit maximization; revenue analysis; right pricing; right sizing; service level agreement; total cost of ownership; Availability; Computational modeling; Economics; Maintenance engineering; Pricing; Servers; Software; A Cloud Economic model; Availability; Cloud TCO; Cost; Penalty; Profit maximization;

fLanguage

English

Publisher

ieee

Conference_Titel

Availability, Reliability and Security (ARES), 2012 Seventh International Conference on

Conference_Location

Prague

Print_ISBN

978-1-4673-2244-7

Type

conf

DOI

10.1109/ARES.2012.44

Filename

6329194