Fixed and Market Pricing for Cloud Services
This paper considers two simple pricing schemes for selling cloud instances and studies the trade-off between them. The authors characterize the equilibrium for the hybrid system where arriving jobs can choose between fixed or the market based pricing. They provide theoretical and simulation based evidence suggesting that fixed price generates higher expected revenue than the hybrid system. Cloud computing provides on-demand and scalable access to computing resources. Public clouds, such as Windows Azure and Amazon EC2, treat infrastructure computing as a service that can be purchased and delivered over the Internet.