Spawn: A Distributed Computational Economy
IEEE Transactions on Software Engineering
Pricing in computer networks: motivation, formulation, and example
IEEE/ACM Transactions on Networking (TON)
Price dynamics of vertically differentiated information markets
Proceedings of the first international conference on Information and computation economies
Multiagent systems and societies of agents
Multiagent systems
Mini-Grids: Effective Test-Beds for GRID Application
GRID '00 Proceedings of the First IEEE/ACM International Workshop on Grid Computing
JaWS: An Open Market-Based Framework for Distributed Computing over the Internet
GRID '00 Proceedings of the First IEEE/ACM International Workshop on Grid Computing
An Economic Paradigm for Query Processing and Data Migration in Mariposa
PDIS '94 Proceedings of the Third International Conference on Parallel and Distributed Information Systems
Bidding for Storage Space in a Peer-to-Peer Data Preservation System
ICDCS '02 Proceedings of the 22 nd International Conference on Distributed Computing Systems (ICDCS'02)
Condor-G: A Computation Management Agent for Multi-Institutional Grids
HPDC '01 Proceedings of the 10th IEEE International Symposium on High Performance Distributed Computing
The Contract Net Protocol: High-Level Communication and Control in a Distributed Problem Solver
IEEE Transactions on Computers
Topographically discounted Internet infrastructure resources: a panel study and econometric analysis
Information Technology and Management
A Market Design for Grid Computing
INFORMS Journal on Computing
Information Systems Research
CCGRID '09 Proceedings of the 2009 9th IEEE/ACM International Symposium on Cluster Computing and the Grid
A Clock-and-Offer Auction Market for Grid Resources When Bidders Face Stochastic Computational Needs
INFORMS Journal on Computing
Risk Management and Optimal Pricing in Online Storage Grids
Information Systems Research
Efficient Risk Hedging by Dynamic Forward Pricing: A Study in Cloud Computing
INFORMS Journal on Computing
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Internet storage services allow businesses to move away from maintaining their own internal storage networks. Service providers currently follow a utility pricing model which translates to them absorbing all the risk that arises from the fluctuating storage needs of their customers. The risk borne by the Internet storage service providers has large revenue implications as Internet startups and smaller companies, which face significant demand stochasticity, constitute an important segment of their clientele. We develop an option pricing mechanism to hedge against this risk and evaluate its effectiveness vis-à-vis forward contracts. We obtain the conditions under which options dominate forward contracts and the trade-offs involved when the provider has to decide on appropriate pricing mechanisms. Our empirical study uses publicly obtainable traffic data of Amazon S3 clients to validate the analytical results. We show that providers can significantly benefit from including options in their risk-hedging portfolio, especially when there is less variation in the costs faced by the buyers in building their own data networks as opposed to using cloud services.