Maximizing Liquidity in Cloud Markets through Standardization of Computational Resources

Ivan Breskovic (), Ivona Brandic () and Jörn Altmann
Additional contact information
Ivan Breskovic: Distributed Systems Group, Institute of Information Systems, Vienna University of Technology
Ivona Brandic: Distributed Systems Group, Institute of Information Systems, Vienna University of Technology

No 2013100, TEMEP Discussion Papers from Seoul National University; Technology Management, Economics, and Policy Program (TEMEP)

Abstract: Low liquidity of cloud markets can result in market instability and inefficiency, preventing the successful implementation of ubiquitous computing on demand. To circumvent this issue, it has been suggested to channel demand and supply into a limited number of standardized services. These standardized services can even be automatically adapted to user requirements with the goal of continuously improving market performance. In this paper, we focus on answering how many standardized services should be placed in the market. This work is based on a new definition of liquidity for cloud resources, which in turn has been derived from liquidity definitions of financial markets. Using a simulation framework, we evaluate our method for estimating the optimal quantity of standardized services with respect to market liquidity and demonstrate the benefits of this approach in terms of increase in market efficiency and decrease in users' cost of participation in the market. The methods presented in this paper have the potential to be applied in other electronic markets as well.

Keywords: Service Level Agreement; Electronic Markets; Cloud Economics; Autonomic Computing; Standardized Goods; Market Modeling; Market Liquidity. (search for similar items in EconPapers)
JEL-codes: C61 C63 C88 D86 L14 L15 L86 M15 M21 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2013-02, Revised 2013-02
New Economics Papers: this item is included in nep-cmp and nep-sog
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published in Proceedings of the International Symposium on Service-Oriented System Engineering, San jose, USA (SOSE 2013).

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http://temep-repec.my-groups.de/DP-100.pdf First version, 2013 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:snv:dp2009:2013100

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