A Cost Model for Hybrid Clouds

Mohammad Mahdi Kashef () and Jörn Altmann
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Mohammad Mahdi Kashef: TEMEP, College of Engineering, Seoul National University

No 201182, TEMEP Discussion Papers from Seoul National University; Technology Management, Economics, and Policy Program (TEMEP)

Abstract: Cloud computing aims at allowing customers to utilize computational resources and software hosted by service providers. Thus, it shifts the complex and tedious resource and software management tasks typically done by customers to the service providers. Besides promising to eliminate these obstacles of resource management for consumers, Cloud computing also promises to reduce the cost of IT infrastructure. In particular, it promises to reduce the cost of IT through lower capital and operational expenses, stemming from a Cloud’s economies of scale and from allowing organizations to purchase just as much computer and storage resources as needed whenever needed. A clear specification of savings however requires a detailed specification of the costs incurred. Although there are some efforts to define cost models for Clouds, the need for a comprehensive cost model, which covers all cost factors, is undeniable. In this paper, we cover this gap by suggesting a cost model for hybrid Clouds (i.e., the combinations of a private data center (private Cloud) and the public Cloud). This model is based on a comprehensive literature research on cost factors and the idea of combining cost of data centers and cost for using Clouds. Finally, we demonstrate the workings of the suggested cost model by applying it to a specific Cloud scenario.

Keywords: Cloud computing; hybrid Clouds; Infrastructure-as-a-Service; Cloud service migration; cost modeling; IT cost factors; Cloud economics; cost model comparison. (search for similar items in EconPapers)
JEL-codes: C02 D24 D40 L24 L86 M15 M21 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2011-12, Revised 2011-12
New Economics Papers: this item is included in nep-cmp
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published in Proceedings of 8th International Workshop on Economics of Grids, Clouds, Systems, and Services, GECON 2011.

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http://temep-repec.my-groups.de/DP-82.pdf First version, 2011 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:snv:dp2009:201182

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