User perceived value-aware cloud pricing for profit maximization of multiserver systems

With the rapid deployment of cloud computing infrastructures, understanding the economics of cloud computing has becoming a pressing issue for cloud service providers. However, existing pricing models rarely consider the dynamic interaction between user requests and the cloud service provider, thus can not accurately reflect the law of supply and demand in marketing. In this paper, we propose a pricing model based on the concept of user perceived value in the domain of economics that accurately capture the real supply and demand situation in the cloud service market. We then design a profit maximization scheme based on the presented dynamic pricing model that optimizes profit of the cloud service provider without violating user service-level agreement. Extensive experiments using data extracted from real-world applications validate the effectiveness of the proposed user perceived value-based pricing model. The proposed profit maximization scheme achieves 24.44% more profit as compared to the state of the art benchmarking methods.