Coordination of Pricing Decisions in a Cloud Computing Service Supply Chain

Abstract

This paper establishes a two-tier cloud computing service supply chain model composed of an application infrastructure provider (AIP) and an application service provider (ASP). Aiming at the pricing problem of cloud computing service supply chain computing capacity, the queuing model of cloud computing service supply chain is established. Afterwards, we analyze the profitability of supply chain members and design a two-part tariff to make the leasing price of cloud computing service be agreed on. Finally, the validity of two-part tariff is verified by numerical analysis.