An overview of cloud computing pricing models, showing the different pricing schemes used on the cloud with some examples

1. Cloud Computing Pricing Models

2. Plan
• Introduction
• Pricing In Cloud
• Pricing Models
• Fixed
• Dynamic
• Theoretical
• Conclusion
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3. Introduction
Cloud Computing:
“The practice of using a network of remote servers hosted on the
Internet to store, manage, and process data, rather than a local server
or a personal computer”
[Oxford Online Dictionary]
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4. Cloud Computing Services
… Storage
(STaaS) ,
Security
(SECaaS),
Test
environment
(TEaaS)
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5. Cloud Computing Characteristics
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6. Deployment Models
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7. Pricing in Cloud
Service provider Customer
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8. Pricing in Cloud
• Prices are influenced by:
• Initial Cost / Investment
• Lease Period / Contract Time
• Quality of Service
• Rate of depreciation
• Age of Resources
• Cost of Maintenance
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9. Pricing Models
•Fixed Pricing
Long Time , Static
•Dynamic Pricing
Real-time, flexible
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10. Fixed Pricing
• Static pricing
• Long time
• Simple profit estimation
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11. Pay-per-use pricing (1/2)
• Implemented
• Resources reserved for users
• Customers is aware of the exact price
• Not affected by demand
Standard Storage
First 1 TB / month 0.0390$ / GB
Next 49 TB / month 0.0383$ / GB
Next 450 TB / month 0.0377$ / GB
Next 500 TB / month 0.0370$ / GB
Next 4000 TB / month 0.0364$ / GB
Over 5000 TB / month 0.0357$ / GB
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12. Subscription pricing
• Implemented
• Preselected
Combination
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13. Hybrid Pricing
• Implemented
• Pay per use +
Subscription
• When Subscription
limit exceed -> pay
per use
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14. Pay for Resources (1/2)
• Implemented
• Maximum utilization of resources
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15. Other Fixed Pricing – Price List
http://www.oracle.com/us/corporate/pricing/price-lists/index.html
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16. Fixed Pricing - Summary
• Commonly implemented
• Easy implementation / Profit estimation
• Unfair for the customers or providers
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17. Dynamic pricing (1/5)
• Real-Time
• Flexible
• Price = F(Cost, Time, …)
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18. Dynamic pricing (2/5)
Pricing Model Pricing approach Fairness Merits Demerits
Cost-Based
Merge profit with
the level of Cost
Not Fairs with users
Easy to estimate
price
Doesn’t consider
the role of customer
Value-Based
The basis of user
perceiving
Fair for providers
Maximum revenue
gain
Hard to implement
Competition-Based
The competitor
price of services
Fair with users Easily implemented User not considered
Customer-Based
What user prepare
to pay
Fair with users
Take care of user
perspective
Hard to set price
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19. Dynamic pricing (3/5)
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20. Dynamic pricing (4/5)
MSCA exam price in Lebanon on December 2017
MSCA exam price in United States on December 2017
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21. Dynamic pricing (5/5)
MSCA exam price will be decreased if the customer approve that he is a student
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22. Dynamic pricing - Summary
• Not easy to predict
• Maximize the profit
• Not implemented in Cloud Services (only retailers)
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23. Theoretical Models
• Dynamic Resource pricing (demand, supply)
• Pricing algorithm for cloud computing resources (real-time pricing)
• Genetic model for pricing (real-time pricing)
…
Not implemented but simulations may exists
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24. Conclusion (1/2)
• Many cloud pricing models are found
• Fixed pricing models are commonly implemented
• Unfair for customers or providers
• Mostly biased to providers
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25. Conclusion (2/2)
• Dynamic pricing -> new opportunities
• Optimization is needed
• Predictive analysis
• International standardization
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26. Thank You
References:
- Aishwarya Soni and Muzammil Hasan, “Pricing schemes in cloud computing : a review” , International Journal of Advanced Computer
Research, Vol 7, 20-Feb-2017
- May Al-Roomi, Shaikha Al-Ebrahim, Sabika Buqrais and Imtiaz Ahmad , “Cloud Computing Pricing Models: a Survey”, International Journal
of Grid and Distributed Computing Vol.6 , 05-Jun-2013
- Artan Mazrekaj and Isak Shabani and Besmir Sejdiu , “Pricing schemes in cloud computing: an overview” , International Journal of
Advanced Computer Science and Applications, Vol. 7 , 2016
- Oxford Online Dictionary
- Microsoft Azure web site, https://azure.microsoft.com/en-us/pricing/details/cloud-services/ , Retrieved in : 05-Dec-2017
- Oracle co. website, http://www.oracle.com/us/corporate/pricing/price-lists/index.html , Retrieved in : 05-Dec-2017
- Dropbox website, https://www.dropbox.com/business/pricing , Retrieved in : 05-Dec-2017
- Microsoft website, https://www.microsoft.com/en-us/learning/mcsa-windows-server-2016-certification.aspx , Retrieved in : 05-Dec-2017