Elastic Economic Model for Cloud Service Providers
Soheil Qanbari Fei Li Schahram Dustdar and Tian-Shyr Dai
This study introduces a novel Cloud Asset Pricing Tree (CAPT) model that finds the optimal premium price of the Cloud federation options effi-ciently. Providers will benefit by this model to make decisions when to buy options in advance and when to exercise them to achieve more economies of scale. The CAPT model adapts its structure to address the price elasticity concerns and makes the demand and provisioning, price inelastic. Our empirical evidences suggest that using the CAPT model, exploits the Cloud market potential as an opportunity for more resource utilization and future capacity planning.