PACIS 2019 Proceedings


In this research, we present a game-theoretical model to analyze the competition between a public cloud provider and a hybrid cloud provider, considering their differences in deployments and pricing models. We first find that the clients with more data to process are more apt to choose the hybrid cloud provider. We then find that when the public cloud product and hybrid cloud product are sufficiently differentiated, the public cloud provider can command a monopoly price; however, when they are not highly differentiated, the market competition will be intensified. Further, we find that the hybrid cloud provider is always willing to charge a low price for its public cloud service to attract clients.