Modelling and optimizing cloud computing price are the significant challenges facing many cloud computing practitioners and researchers in the field of cloud economics or Cloudonomics for either achieving competitive advantages or managing cloud resources effectively. Currently, the number of cloud pricing schemes offered by different cloud service providers (CSPs) is overwhelming. Many customers, especially business customers, are puzzling with these pricing models and do not know how to analyze these price schemes to develop their business case so that they can transform their legacy IT infrastructure into a cloud for their business applications. On the other hand, many new CSPs, as newcomers urgently need to know how to create and optimize the cloud price models so that they can effectively compete with their local and global peers and serve their targeted customers well with limited resources by exploring cloud Business to Business (B2B) market. These issues are interdisciplinary challenges involved, such as cloud computing technologies, economics, industrial organization, price theory, decision theory, market segmentation theory, and even the philosophy of science.
This presentation investigates these issues from both cloud customers and CSPs’ perspective. It provides a cutting edge solution to resolve the cloud price modelling and optimizing problem from four aspects, namely hedonic pricing, cloud market segmentation, customer utility values, and cloud baseline infrastructure costs. Together, the modelling process includes both external and internal rationalities for various cloud price schemes.”
Caesar Wu is a senior IEEE member. He is one of the authors of Cloud Data Center and Cost Modeling. He was a senior research officer and a manager in Telstra. He managed and operated many of Telstra’s enterprises and IT data centres. He has over 30 years of working, researching, and academic experiences across various industries.”