Abstract
In cloud computing environment, pricing is an effective method for resource allocation and it provides efficient incentive for cloud providers to provide cloud services. In this paper, we investigate two pricing schemes for the allocation of cloud resources in a monopoly cloud market subject to constrained capacity of the cloud provider. There are two main pricing schemes, on-demand and reserved pricing mechanisms adopted by leading cloud providers, i.e., Amazon and Gogrid. We analyze how cloud users make their choice decisions to subscribe to cloud resources under different pricing schemes.