Pricing for Resource Allocation in Cloud Computing

Abstract—In cloud computing environment, pricing is an effective method for resource allocation and it provides efficient incentive for cloud providers to provide cloud services. In this paper, the author investigates two pricing schemes for the allocation of cloud resources in a monopoly cloud market subject to constrained capacity of the cloud provider. There are two main pricing schemes, on-demand and reserved pricing mechanisms adopted by leading cloud providers, i.e., Amazon and Gogrid. The paper analyzes how cloud users make their choice decisions to subscribe to cloud resources under different pricing schemes. Keywords-cloud computing; pricing schemes; resource allocation; revenue; utility I