Date Added: May 2010
This paper examines the economics of cloud computing charging from the perspective of a supercomputing resource provider offering its own resources. To evaluate the competitiveness of the computing center with cloud computing resources, the paper develops a comprehensive system utilization charging model similar to that used by Amazon EC2 and apply the model to the current resources and planned procurements. For the current resource, the paper finds that charging for computational time may be appropriate, but that charging for data traffic between the supercomputer and the storage/front-end systems would result in negligible additional revenue. Similarly, charging for data storage capacity at currently typical commercial rates yields insufficient revenue to offset the acquisition and operation of the storage.