Provider Competition in Infrastructure-as-a-Service

J. Künsemöller, S. Brangewitz, H. Karl, C.-J. Haake, in: Proceedings of the 2014 IEEE International Conference on Services Computing (SCC), 2014, pp. 203–210.

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This paper explores how cloud provider competition influences instance pricing in an IaaS (Infrastructure-as-a-Service) market. When reserved instance pricing includes an on-demand price component in addition to a reservation fee (two-part tariffs), different providers might offer different price combinations, where the client’s choice depends on its load profile. We investigate a duopoly of providers and analyze stable market prices in two-part tariffs. Further, we study offers that allow a specified amount of included usage (three-part tariffs). Neither two-part nor three-part tariffs produce an equilibrium market outcome other than a service pricing that equals production cost, i.e., complex price structures do not significantly affect the results from ordinary Bertrand competition.
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Proceedings of the 2014 IEEE International Conference on Services Computing (SCC)
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203-210
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Künsemöller J, Brangewitz S, Karl H, Haake C-J. Provider Competition in Infrastructure-as-a-Service. In: Proceedings of the 2014 IEEE International Conference on Services Computing (SCC). ; 2014:203-210. doi:10.1109/SCC.2014.35
Künsemöller, J., Brangewitz, S., Karl, H., & Haake, C.-J. (2014). Provider Competition in Infrastructure-as-a-Service. In Proceedings of the 2014 IEEE International Conference on Services Computing (SCC) (pp. 203–210). https://doi.org/10.1109/SCC.2014.35
@inproceedings{Künsemöller_Brangewitz_Karl_Haake_2014, title={Provider Competition in Infrastructure-as-a-Service}, DOI={10.1109/SCC.2014.35}, booktitle={Proceedings of the 2014 IEEE International Conference on Services Computing (SCC)}, author={Künsemöller, Jörn and Brangewitz, Sonja and Karl, Holger and Haake, Claus-Jochen}, year={2014}, pages={203–210} }
Künsemöller, Jörn, Sonja Brangewitz, Holger Karl, and Claus-Jochen Haake. “Provider Competition in Infrastructure-as-a-Service.” In Proceedings of the 2014 IEEE International Conference on Services Computing (SCC), 203–10, 2014. https://doi.org/10.1109/SCC.2014.35.
J. Künsemöller, S. Brangewitz, H. Karl, and C.-J. Haake, “Provider Competition in Infrastructure-as-a-Service,” in Proceedings of the 2014 IEEE International Conference on Services Computing (SCC), 2014, pp. 203–210.
Künsemöller, Jörn, et al. “Provider Competition in Infrastructure-as-a-Service.” Proceedings of the 2014 IEEE International Conference on Services Computing (SCC), 2014, pp. 203–10, doi:10.1109/SCC.2014.35.
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