Open AccessDynamic Pricing Decision of Cloud Service Oriented to Elastic Scaling
Author(s) -
Feng Mei,
Cheng Yan,
Aiqing Kou
Publication year - 2021
Publication title -
bcp business and management
Language(s) - English
Resource type - Journals
ISSN - 2692-6156
DOI - 10.54691/bcpbm.v15i.197
Subject(s) - sensitivity (control systems) , cloud computing , scaling , service (business) , service provider , computer science , dynamic pricing , markov process , operations research , business , marketing , engineering , mathematics , geometry , electronic engineering , operating system , statistics
Can elastic scaling service and dynamic pricing bring more profits to cloud service providers? If so, under what circumstances can the benefits be maximized? In this article, a decision support model based on Markov process is proposed for pricing of cloud service oriented to elastic scaling. This service is only provided to Long-term contract customers with different time sensitivities, which will be used to divide the market into four categories: no time sensitivity, low time sensitivity, high time sensitivity, and scattered time sensitivity. The purpose of this article is to show whether elastic scaling service is necessary for cloud service providers. Through the experimental simulation, it can be found that the elastic scaling service can bring more profits to the supplier when the customer's time sensitivity is high or scattered. Dynamic pricing strategy is particularly important when facing the scattered time sensitivity of customers.