A Game-Theoretical Approach to the Benefits of Cloud Computing

In order to answer the question whether or not to utilize the cloud for processing, this paper aims at identifying characteristics of potential cloud beneficiaries and advisable actions to actually gain financial benefits. A game-theoretic model of an Infrastructure-as-aService (IaaS) cloud market, covering dynamics of pricing and usage, is suggested. Incorporating the possibility of hybrid clouds (clouds plus own infrastructure) into this model turns out essential for cloud computing being significantly in favor of not only the provider but the client as well. Parameters like load profiles and economy of scale have a huge effect on likely future pricing as well as on a cost-optimal split-up of client demand between a client’s own data center and a public cloud service.