Financial Option Market Model for Federated Cloud Environments

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Executive Summary

Pay-per-use service by Cloud service providers has attracted customers in the recent past and is still evolving. Since the resources being dealt within Clouds are non-storable and the physical resources need to be replaced very often, pricing the service in a way that would return profit on the initial capital investments to the service providers has been a major issue. Moreover, to maintain Quality of Service (QoS) to customers who reserve the resources in advance and may or may not be using the resources at a future date makes the resources wasted, if not allocated to other on-demand users.

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