Bitching, bouncing and brawling - How backchannels brought colour to conference calls


The term Cloud Computing represents a paradigm for offering different kind of Web services, which can be dynamically developed, composed and deployed on virtualized infrastructure. This work will extend the concepts known from the revenue management to the specific case of Cloud Computing and propose two models, bid price control and a variant of dynamic pricing, that will compete with the commonly used static pricing. Both models will try to maximize revenues by controlling the availability or price of every offered fare class. The aim is to understand from a Cloud Computing company’s perspective, how decisions about the pricing and the optimal allocation of the given resources for the various Cloud Services can be supported. As expected, simulation results show that an optimally adjusted dynamic pricing model will outperform any pricing model with static prices and will simultaneously contribute to slightly smoother resource utilization in some cases. However, we will see that the adjustment itself is difficult to realize, and if conducted suboptimal, it may also have certain disadvantages compared to static prices. In combination with a reasonable product differentiation, the bid-price method performed very solid and in nearly any case better than the pure static pricing model.

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