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In Cloud computing, the information is permanently stored in servers in the internet. From there, the Cloud consumers utilize resources using Virtual Servers and they are charged based on pay-per-use basis. For this, Cloud provider offer two type of provisioning plans, namely On-demand and Reservation plan. They are also called as Short-term and Long-term planning. In general, the reservation plan has minimum cost than on-demand plan. Although the reservation offers the discounted usage price, this option could result in over provisioning and under provisioning problems due to demand uncertainty.
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