Understanding and Analysing Resource Utilization, Costing Strategies and Pricing Models in Cloud Computing

This paper is primarily focused on understanding the basics of cloud computing economics – specific pricing models and general cost structure and compares between basic cost structures. It also examines 15 pricing models dependent on various bases and attempts to consolidate the different pricing methods used to guarantee maximum profitability to both the service provider and consumer. To avail the services of cloud computing from the cloud service provider, the organization has to incur individual costs. There are three types of costs: fixed, variable, and semi-variable costs. Each type is computed and analyzed. There are more than 30 pricing models though the pay-as-you-go model, subscription model, and pay-for-resources models are in demand. To consider and discuss the basics of cloud computing, emphasizing its economics and pricing models considering various aspects and costing components, using and estimating plans from various cloud Registering suppliers. The paper also considers identifying gaps, if any, present in the current pricing models that are highly preferred with other pricing models that are designed but not implemented due to practical conditions and fear of higher percentage of risk and error and to compare the basic prices provided by the cloud service providers.