Cloud Asset Pricing Tree (CAPT) - Elastic Economic Model for Cloud Service Providers

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

2014

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.

Paper Citation

in Harvard Style

Qanbari S., Li F., Dustdar S. and Dai T. (2014). Cloud Asset Pricing Tree (CAPT) - Elastic Economic Model for Cloud Service Providers . In Proceedings of the 4th International Conference on Cloud Computing and Services Science - Volume 1: CLOSER, ISBN 978-989-758-019-2, pages 221-229. DOI: 10.5220/0004849702210229

in Bibtex Style

@conference{closer14,
author={Soheil Qanbari and Fei Li and Schahram Dustdar and Tian-Shyr Dai},
title={Cloud Asset Pricing Tree (CAPT) - Elastic Economic Model for Cloud Service Providers},
booktitle={Proceedings of the 4th International Conference on Cloud Computing and Services Science - Volume 1: CLOSER,},
year={2014},
pages={221-229},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0004849702210229},
isbn={978-989-758-019-2},
}

in EndNote Style

TY - CONF
JO - Proceedings of the 4th International Conference on Cloud Computing and Services Science - Volume 1: CLOSER,
TI - Cloud Asset Pricing Tree (CAPT) - Elastic Economic Model for Cloud Service Providers
SN - 978-989-758-019-2
AU - Qanbari S.
AU - Li F.
AU - Dustdar S.
AU - Dai T.
PY - 2014
SP - 221
EP - 229
DO - 10.5220/0004849702210229