e-journal

Dynamic Cloud Pricing for Revenue Maximization

---

In cloud computing, a provider leases its computing resources in the form of virtual machines to users, and a price is charged for the period they are used. Though static pricing is the dominant pricing strategy in today’s market, intuitively price ought to be dynamically updated to improve revenue. The fundamental challenge is to design an optimal dynamic pricing policy, with the presence of stochastic demand and perishable resources, so that the expected long-term revenue is maximized. In this paper, we
make three contributions in addressing this question. First, we conduct an empirical study of the spot price history of Amazon, and find that surprisingly, the spot price is unlikely to be set according to market demand. This has important implications on understanding the current market, and motivates us to develop and analyze market-driven dynamic pricing mechanisms. Second, we adopt a revenue management framework from economics, and formulate the revenue maximization problem with dynamic pricing as a stochastic dynamic program. We characterize its optimality conditions, and prove important structural results. Finally, we extend to consider a nonhomogeneous demand model.
Index Terms—Dynamic pricing, revenue maximization, spot market, cloud computing, public cloud, dynamic programming

---

Ketersediaan

Tidak ada salinan data

Informasi Detail

Judul Seri

IEEE TRANSACTIONS ON CLOUD COMPUTING

No. Panggil

-

Penerbit

New York : IEEE., 2013

Deskripsi Fisik

IEEE TRANSACTIONS ON CLOUD COMPUTING, VOL. 1, NO. 2, JULY-DECEMBER 2013

Bahasa

English

ISBN/ISSN

2168-7161

Klasifikasi

-

Tipe Isi

-

Tipe Media

-

Tipe Pembawa

-

Edisi

VOL. 1, NO. 2, JULY-DECEMBER 2013

Subjek

TEKNIK

Info Detail Spesifik

-

Pernyataan Tanggungjawab

Yuli/Agus

Versi lain/terkait

Lampiran Berkas

Komentar

---

Anda harus masuk sebelum memberikan komentar