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Cloud computing allow the users to efficiently and dynamically provisioncomputing resource to meet their IT needs. Cloud Provider offers twosubscription plan to the customer namely reservation and on-demand. Thereservation plan is typically cheaper than on-demand plan. If the actualcomputing demand is known in advance reserving the resource would bestraightforward. The challenge is how to make properly resource provisioningand how the customers efficiently purchase the provisioning options underreservation and on-demand. To address this issue, two-phase algorithm areproposed to minimize service provision cost in both reservation and on-demandplan. To reserve the correct and optimal amount of resources duringreservation, proposed a mathematical formulae in the first phase. To predictresource demand, use kalman filter in the second phase. The evaluation resultshows that the two-phase algorithm can significantly reduce the provision costand the prediction is of reasonable accuracy.

Optimizing the Cost for Resource Subscription Policy in IaaS Cloud