DICB: Dynamic intelligent customizable benign pricing strategy for cloud computing

Wei Tek Tsai, Guanqiu Qi

Research output: Chapter in Book/Report/Conference proceedingConference contribution

26 Scopus citations

Abstract

As cloud services need a fair pricing for both service providers and customers. If the price is too high, the customer may not use it, if the price is too low, service providers have less incentive to develop services. This paper proposes a novel pricing framework for cloud services using game theory (Cournot Duopoly, Cartel, and Stackelberg models) and data mining techniques (clustering and classification, e.g., SVM (Support Vector Machine)) to determine optimal prices for cloud services. The framework is dynamic because the price is determined based on recent usage data and available resources, it is also intelligent as it takes into various economic models into consideration, it is benign because it considers two conflicting parties, service providers and consumers, into consideration at the same time, and it is customizable based on various pricing strategies proposed by service providers and usage patterns as exhibited by consumers. Linear regression is used in various game theory models to determine the optimal price. A global pricing union (GPU) framework is proposed to achieve the best practice of game theory models. Based on the proposed technique, this paper applies this pricing framework to a case study in cloud services, and demonstrates that the prices obtained meet the requirement of traditional supply-demand analysis. In other words, the price obtained is good enough.

Original languageEnglish (US)
Title of host publicationProceedings - 2012 IEEE 5th International Conference on Cloud Computing, CLOUD 2012
Pages654-661
Number of pages8
DOIs
StatePublished - Oct 2 2012
Event2012 IEEE 5th International Conference on Cloud Computing, CLOUD 2012 - Honolulu, HI, United States
Duration: Jun 24 2012Jun 29 2012

Publication series

NameProceedings - 2012 IEEE 5th International Conference on Cloud Computing, CLOUD 2012

Other

Other2012 IEEE 5th International Conference on Cloud Computing, CLOUD 2012
CountryUnited States
CityHonolulu, HI
Period6/24/126/29/12

Keywords

  • Game Theory
  • Pricing Models
  • SaaS

ASJC Scopus subject areas

  • Software

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  • Cite this

    Tsai, W. T., & Qi, G. (2012). DICB: Dynamic intelligent customizable benign pricing strategy for cloud computing. In Proceedings - 2012 IEEE 5th International Conference on Cloud Computing, CLOUD 2012 (pp. 654-661). [6253563] (Proceedings - 2012 IEEE 5th International Conference on Cloud Computing, CLOUD 2012). https://doi.org/10.1109/CLOUD.2012.49