Impact of pay-as-you-go cloud platforms on software pricing and development: a review and case study
ICCSA'12 Proceedings of the 12th international conference on Computational Science and Its Applications - Volume Part IV
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In an effort to improve profits, most contemporarybusinesses are implementing operational cost basedengineering initiatives and measures for pricingservices. However, service provision requires businessexecutives to have a comprehensive understanding ofthe meaning of ‘value’ as a guide to strategically priceservices in order to improve profitability. This papermakes an effort to present a theory of value – as acustomer prerogative of service utilisation. Theresearch aims at developing a pricing model to utilise,communicate and capture the value of a serviceprovided by a service provider. It takes a newapproach of focusing on the external value asperceived by the customer and advocate matchingprice to value. The paper helps both; the customersand the service providers to achieve business growthby commanding the right price for the softwareservices. The ultimate goal is to match the price thecustomer pays for a service expected to deliveroutstanding value.