Comparison of Three Different Pricing Models for Cloud Computing Services

Provided by: AICIT
Topic: Cloud
Format: PDF
Based on the theory of two-sided markets, this paper discusses and compares the price strategies of cloud computing services from three different charging mode-charging a lump-sum fee, charging a per-transaction fee and two-part tariff. The result shows that prices for users or developers and the profits of cloud platforms are both directly proportional to the marketing differentiation strategy of cloud platforms and are inversely proportional to the dependence between users and developers and the scale effect of users; two-part tariff is the optimal pricing mode when users and developers are single-homing; Amazon, Google, Microsoft and other cloud computing service companies do not get maximum profits via charging a per-transaction fee.

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