Massachusetts Institute of Technology
As cloud computing becomes more and more popular, understanding the economics of cloud computing becomes critically important. To maximize the profit, a service provider should understand both service charges and business costs and how they are determined by the characteristics of the applications and the configuration of a multiserver system. The problem of optimal multiserver configuration for profit maximization in a cloud computing environment is studied. The authors pricing model takes such factors into considerations as the amount of a service, the workload of an application environment, the configuration of a multiserver system, the service level agreement, the satisfaction of a consumer, the quality of a service, the penalty of a low quality service, the cost of renting, the cost of energy consumption and a service provider's margin and profit.