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Journal of Revenue and Pricing Management

, Volume 18, Issue 2, pp 112–122 | Cite as

Pricing schemes and profit-maximizing pricing for cloud services

Practice Article

Abstract

As cloud computing rapidly penetrates enterprise computing markets, the paradigm of enterprise computing shifts from client–server data centers to cloud-based data centers. While cloud computing is leading technological innovations to a new level, it is challenging for cloud providers to make informed decisions in regard to pricing of their services. This study presents a typology of pricing schemes for cloud services and develops a decision model based on the perspectives of both cloud providers and corporate customers to maximize the total profit for cloud providers. The model is operationalized with an illustration using real pricing data. A sensitivity analysis provides valuable insights into the pricing dynamics between cloud providers and cloud customers.

Keywords

Cloud services Profit maximization Pricing Subscription Pay-as-you-go 

Notes

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Copyright information

© Springer Nature Limited 2019

Authors and Affiliations

  1. 1.Cecil P. McDonough Endowed Professor in Business, School of Computer Sciences, College of Business and TechnologyWestern Illinois UniversityMacombUSA

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