An Economic Model for Scaling Cloud Applications

Web technologies along with the virtualization ofcomputation and storage resources have allowed extensive flexibilityin the development, deployment and delivery of softwaresolutions. On one hand, this flexibility has allowed engineersto commission and repurpose resources on demand and atwill. On the other hand, the flexibility has given rise to newbusiness models and interesting implications in the economics ofsoftware ecosystems. In this work, we propose a model to capturethe technical and economic transactions within a web softwareecosystem deployed on a dynamic cloud environment. Next, wedemonstrate the use of such model to define rules for a moreeconomically efficient adaptation strategy for web applicationsas their incoming traffic fluctuates.