Pricing of Cloud IaaS Based on Feature Prioritization - A Value Based Approach

Today, cloud computing is transforming the IT industry. An increasing number of providers are offering various services where computing, storage and application resources, can be dynamically provisioned on a pay per use basis. However the demands and requirements of different users are diversifying and growing sharply. In order to maximize the revenue, a proper pricing model is required. Thus systemic approaches need to be explored to estimate the potential value of such services to specific users for a specific context. The current study proposes a value based pricing approach for Infrastructure as a Service (IaaS), one of the important delivery models. The decision support approach prioritizes and aggregates the dimensions of IaaS for the migration to cloud, from the users’ perspective by integrating Fuzzy Set Theory and Analytic Hierarchy Process for group decision making.

[1]  Ruoning Xu,et al.  Fuzzy least-squares priority method in the analytic hierarchy process , 2000, Fuzzy Sets Syst..

[2]  H.-J. Zimmermann.  Fuzzy set theory , 2010 .

[3]  Louise Canning,et al.  Price-setting in business-to-business markets. , 2007 .

[4]  Rajiv D. Banker,et al.  Best Pricing Strategy for Information Services , 2010, J. Assoc. Inf. Syst..

[5]  Narasimha Bolloju,et al.  Aggregation of analytic hierarchy process models based on similarities in decision makers' preferences , 2001, Eur. J. Oper. Res..

[6]  Dong Cao,et al.  Modifying inconsistent comparison matrix in analytic hierarchy process: A heuristic approach , 2008, Decis. Support Syst..

[7]  R. Harmon,et al.  Linking marketing strategy to customer value: implications for technology marketers , 1997, Innovation in Technology Management. The Key to Global Leadership. PICMET '97.

[8]  Hans-Jürgen Zimmermann,et al.  Fuzzy Set Theory - and Its Applications , 1985 .

[9]  L. Zadeh.  Fuzzy sets as a basis for a theory of possibility , 1999 .

[10]  Rajkumar Buyya,et al.  Article in Press Future Generation Computer Systems ( ) – Future Generation Computer Systems Cloud Computing and Emerging It Platforms: Vision, Hype, and Reality for Delivering Computing as the 5th Utility , 2022 .

[11]  Zhongsheng Hua,et al.  A modified fuzzy logarithmic least squares method for fuzzy analytic hierarchy process , 2006, Fuzzy Sets Syst..

[12]  Subhajyoti Bandyopadhyay,et al.  Cloud computing - The business perspective , 2011, Decis. Support Syst..

[13]  Lotfi A. Zadeh,et al.  Fuzzy Sets , 1996, Inf. Control..

[14]  J.S. Finan,et al.  The analytic hierarchy process: Does adjusting a pairwise comparison matrix to improve the consistency ratio help? , 1997, Comput. Oper. Res..

[15]  J. Buckley,et al.  Fuzzy hierarchical analysis , 1999, FUZZ-IEEE'99. 1999 IEEE International Fuzzy Systems. Conference Proceedings (Cat. No.99CH36315).

[16]  Naixue Xiong,et al.  A game-theoretic method of fair resource allocation for cloud computing services , 2010, The Journal of Supercomputing.

[17]  José María Moreno-Jiménez,et al.  Consistency stability intervals for a judgement in AHP decision support systems , 2003, Eur. J. Oper. Res..

[18]  R. Nagel,et al.  Agile Competitors and Virtual Organizations: Strategies for Enriching the Customer , 1994 .

[19]  T. Saaty,et al.  The Analytic Hierarchy Process , 1985 .

[20]  Lynette Ryals,et al.  Pricing for value in ICT , 2005 .

[21]  Peter Buxmann,et al.  Pricing Strategies of Software Vendors , 2009, Bus. Inf. Syst. Eng..

[22]  Peter C. Fishburn,et al.  Fixed fee versus unit pricing for information goods: competition, equilibria, and price wars , 1997, First Monday.

[23]  M. Armstrong.  Multiproduct Nonlinear Pricing , 1996 .

[24]  H. Demirkan,et al.  Pricing Strategies for Information Technology Services: A Value-Based Approach , 2009 .

[25]  Ludmil Mikhailov,et al.  A fuzzy programming method for deriving priorities in the analytic hierarchy process , 2000, J. Oper. Res. Soc..

[26]  Helmut Krcmar,et al.  THE BUSINESS PERSPECTIVE OF CLOUD COMPUTING: ACTORS, ROLES, AND VALUE NETWORKS , 2010, ECIS 2010.

[27]  Xu Ruoning,et al.  Extensions of the analytic hierarchy process in fuzzy environment , 1992 .

[28]  Thomas L. Saaty,et al.  How to Make a Decision: The Analytic Hierarchy Process , 1990 .

[29]  Bruce L. Golden,et al.  Visualizing group decisions in the analytic hierarchy process , 2003, Comput. Oper. Res..

[30]  Douglas F. Parkhill,et al.  The Challenge of the Computer Utility , 1966 .

[31]  E. Maskin,et al.  Monopoly with Incomplete Information , 1984 .

[32]  José María Moreno-Jiménez,et al.  The geometric consistency index: Approximated thresholds , 2003, Eur. J. Oper. Res..

[33]  Nikolay Borissov,et al.  Cloud-Computing , 2009, Wirtschaftsinf..

[34]  K. Turowski,et al.  A Reference Guide to Cloud Computing Dimensions: Infrastructure as a Service Classification Framework , 2012, 2012 45th Hawaii International Conference on System Sciences.

[35]  Arpan Kumar Kar,et al.  A model for pricing emergent technology based on perceived business impact value , 2011 .

[36]  M. T. Escobar,et al.  Aggregation of Individual Preference Structures in Ahp-Group Decision Making , 2007 .

[37]  Roger Clarke,et al.  Computing Clouds on the Horizon? Benefits and Risks from the User's Perspective , 2010, Bled eConference.

[38]  Andreas Hinterhuber,et al.  Towards value-based pricing—An integrative framework for decision making , 2004 .