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Pricing schemes and profit-maximizing pricing for cloud services

In Lee ()
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In Lee: Western Illinois University

Journal of Revenue and Pricing Management, 2019, vol. 18, issue 2, 112-122

Abstract: Abstract As cloud computing rapidly penetrates enterprise computing markets, the paradigm of enterprise computing shifts from client–server data centers to cloud-based data centers. While cloud computing is leading technological innovations to a new level, it is challenging for cloud providers to make informed decisions in regard to pricing of their services. This study presents a typology of pricing schemes for cloud services and develops a decision model based on the perspectives of both cloud providers and corporate customers to maximize the total profit for cloud providers. The model is operationalized with an illustration using real pricing data. A sensitivity analysis provides valuable insights into the pricing dynamics between cloud providers and cloud customers.

Keywords: Cloud services; Profit maximization; Pricing; Subscription; Pay-as-you-go (search for similar items in EconPapers)
Date: 2019
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