A Caltech Library Service

The Economics of the Cloud

Anselmi, Jonatha and Ardagna, Danilo and Lui, John C. S. and Wierman, Adam and Xu, Yunjian and Yang, Zichao (2017) The Economics of the Cloud. ACM Transactions on Modeling and Performance Evaluation of Computing Systems, 2 (4). Art. No. 18. ISSN 2376-3639. doi:10.1145/3086574.

Full text is not posted in this repository. Consult Related URLs below.

Use this Persistent URL to link to this item:


This article proposes a model to study the interaction of price competition and congestion in the cloud computing marketplace. Specifically, we propose a three-tier market model that captures a marketplace with users purchasing services from Software-as-a-Service (SaaS) providers, which in turn purchase computing resources from either Provider-as-a-Service (PaaS) or Infrastructure-as-a-Service (IaaS) providers. Within each level, we define and characterize market equilibria. Further, we use these characterizations to understand the relative profitability of SaaSs and PaaSs/IaaSs and to understand the impact of price competition on the user experienced performance, that is, the “price of anarchy” of the cloud marketplace. Our results highlight that both of these depend fundamentally on the degree to which congestion results from shared or dedicated resources in the cloud.

Item Type:Article
Related URLs:
URLURL TypeDescription
Additional Information:© 2017 ACM. Received March 2017; accepted April 2017. This work was supported in part by NSF grants CNS-1518941, CNS-1319820, EPAS-1307794, CNS-0846025, and the Hong Kong RGC GRF 14205114.
Funding AgencyGrant Number
Hong Kong Research Grant CouncilGRF 14205114
Issue or Number:4
Record Number:CaltechAUTHORS:20180409-162521250
Persistent URL:
Official Citation:Jonatha Anselmi, Danilo Ardagna, John C. S. Lui, Adam Wierman, Yunjian Xu, and Zichao Yang. 2017. The Economics of the Cloud. ACM Trans. Model. Perform. Eval. Comput. Syst. 2, 4, Article 18 (August 2017), 23 pages.
Usage Policy:No commercial reproduction, distribution, display or performance rights in this work are provided.
ID Code:85711
Deposited By: George Porter
Deposited On:09 Apr 2018 23:30
Last Modified:15 Nov 2021 20:31

Repository Staff Only: item control page