The impact of cloud services pricing on provider profit, consumer surplus, and social welfare

V.M. Gorbachuk, S.O. Gavrylenko

Abstract


The providers of cloud solutions create rentals for computing power and disk space by means of the protected Internet-connections while their consumers pay only for the resources chosen with options of flexible scaling, assuming rather adequate substitution and development for their digital infrastructure without legal property rights for hardware or software. As a result, the users of cloud products get ready services, and their providers obtain the resources necessary for further development of their products. The work is devoted to computing the total gain of all participants in such a market at various pricing models.

Problems in programming 2020; 2-3: 237-245


Keywords


cloud services; subscription pricing; pay-per-use pricing; two-part tariff; indifferent consumer

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DOI: https://doi.org/10.15407/pp2020.02-03.237

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