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The economics of the cloud: price competition and congestion

The economics of the cloud: price competition and congestion The Economics of the Cloud: Price Competition and Congestion JONATHA ANSELMI Basque Center for Applied Mathematics ­ BCAM and DANILO ARDAGNA Dip. di Elettronica e Informazione, Politecnico di Milano and JOHN C.S. LUI Computer Science & Engineering, Chinese University of Hong Kong and ADAM WIERMAN Computing and Mathematical Sciences, California Institute of Technology and YUNJIAN XU Computing and Mathematical Sciences, California Institute of Technology and ZICHAO YANG Computer Science & Engineering, Chinese University of Hong Kong This letter provides an overview of our recent work studying the impacts of price competition and congestion in the cloud marketplace. Specifically, we discuss a three-tier market model that studies a vertical marketplace where users purchase services from Software-as-a-Service (SaaS) providers, which in turn purchase computing resources from either Provider-as-a-Service (PaaS) or Infrastructure-as-a-Service (IaaS) providers. Categories and Subject Descriptors: J.4 [Social and Behavioral Science]: Economics General Terms: Economics; Performance; Theory Additional Key Words and Phrases: Cloud computing, pricing, network economics, congestion 1. INTRODUCTION The cloud computing marketplace has evolved into a highly complex economic system. Cloud providers are not homogeneous, and a vertical market structure has emerged where Infrastructure-as-a-Service (IaaS) and Provider-as-a-Service (PaaS) cloud providers rent out the use of (physical or http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png ACM SIGecom Exchanges Association for Computing Machinery

The economics of the cloud: price competition and congestion

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Publisher
Association for Computing Machinery
Copyright
Copyright © 2014 by ACM Inc.
ISSN
1551-9031
DOI
10.1145/2692375.2692380
Publisher site
See Article on Publisher Site

Abstract

The Economics of the Cloud: Price Competition and Congestion JONATHA ANSELMI Basque Center for Applied Mathematics ­ BCAM and DANILO ARDAGNA Dip. di Elettronica e Informazione, Politecnico di Milano and JOHN C.S. LUI Computer Science & Engineering, Chinese University of Hong Kong and ADAM WIERMAN Computing and Mathematical Sciences, California Institute of Technology and YUNJIAN XU Computing and Mathematical Sciences, California Institute of Technology and ZICHAO YANG Computer Science & Engineering, Chinese University of Hong Kong This letter provides an overview of our recent work studying the impacts of price competition and congestion in the cloud marketplace. Specifically, we discuss a three-tier market model that studies a vertical marketplace where users purchase services from Software-as-a-Service (SaaS) providers, which in turn purchase computing resources from either Provider-as-a-Service (PaaS) or Infrastructure-as-a-Service (IaaS) providers. Categories and Subject Descriptors: J.4 [Social and Behavioral Science]: Economics General Terms: Economics; Performance; Theory Additional Key Words and Phrases: Cloud computing, pricing, network economics, congestion 1. INTRODUCTION The cloud computing marketplace has evolved into a highly complex economic system. Cloud providers are not homogeneous, and a vertical market structure has emerged where Infrastructure-as-a-Service (IaaS) and Provider-as-a-Service (PaaS) cloud providers rent out the use of (physical or

Journal

ACM SIGecom ExchangesAssociation for Computing Machinery

Published: Nov 25, 2014

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