scholarly journals Cloud Services and Pricing Strategies for Sustainable Business Models: Analytical and Numerical Approaches

2019 ◽  
Vol 12 (1) ◽  
pp. 49 ◽  
Author(s):  
Se-Hak Chun

Previous studies have introduced different potential pricing strategies for cloud services. However, not much research has been done comparing subscription pricing and pay-per-use pricing, which are commonly used pricing schemes. Also, there are very few studies which analyze a two-part tariff pricing scheme for cloud services, even though this option may increasingly attract service providers as the cloud market becomes more competitive and the profit margin grows narrower. Previous research has focused on firms’ profitability rather than social welfare due to the limitations of free services. This study uses theoretical and numerical analysis to compare the social welfare and profitability of three pricing schemes commonly used by firms: subscription pricing, pay-per-use pricing, and two-part tariff pricing. It shows that the pay-per-use pricing is the best solution from the perspective of social welfare, which contrasts with the conclusion of a previous study stating that social welfare is maximized under a two-part tariff. This paper also shows that the two-part tariff is the most profitable pricing scheme for firms.

Author(s):  
Ioanna D. Constantiou ◽  
Jörn Altmann

The market of Internet service providers (ISPs) is highly competitive. Although many different pricing schemes could be deployed in this market, two types are mainly offered: flat rate pricing and per-minute pricing. These pricing schemes are criticised for limiting ISPs’ revenues and for not addressing customer’s requirements on service quality. We focus on the ISPs’ business relationships and on their pricing strategies in order to analyse revenue sharing mechanisms. We argue that the introduction of incentive pricing schemes, such as dynamic pricing, may enable provision of service quality by improving revenue sharing among ISPs.


Author(s):  
Sathya Rao ◽  
Eric Mannie-Corbisier ◽  
Leszek Siwik

The way of life has changed with the introduction of information and communication technologies (ICT) in every one’s day to day activities and the business. As ICT technologies are constantly evolving, many people attribute the success of enterprises to the ways they deploy and take advantage of new technologies, not only to make their operations more efficient but most importantly to refine and adopt new effective and adaptive business models. Since the advent of the Internet and the very first Internet service providers (ISP) in operation, the traditional ISP market has been in constant evolution due to the gradual globalisation and commoditisation of ISP services. Deregulation and ICT policies have fostered competition (e.g., unbundling of the local loop and so forth) as well. The Internet is as an important channel of interaction inside and/or outside enterprises. The essence of the Internet is conducting business and running of business processes over data communication networks based on nonproprietary standards (Porter, 2001). The World Wide Web as a portal represents a major electronic business (e-business) platform accessed through communication channels provisioned by network and service providers (such as ISDN, DSL, WLAN, UMTS, etc.). There are many challenging aspects of the e-Business that must be considered for a sustainable business of an ISP (Petrie et al., 2004).


2015 ◽  
Vol 2015 ◽  
pp. 1-12
Author(s):  
Hangoo Jeon ◽  
Kwang-Kyu Seo

Cloud computing service is an evolving paradigm that affects a large part of the ICT industry and provides new opportunities for ICT service providers such as the deployment of new business models and the realization of economies of scale by increasing efficiency of resource utilization. However, despite benefits of cloud services, there are some obstacles to adopt such as lack of assessing and comparing the service quality of cloud services regarding availability, security, and reliability. In order to adopt the successful cloud service and activate it, it is necessary to establish the cloud service certification system to ensure service quality and performance of cloud services. This paper proposes a framework and improvements of the Korea certification system of cloud service. In order to develop it, the critical issues related to service quality, performance, and certification of cloud service are identified and the systematic framework for the certification system of cloud services and service provider domains are developed. Improvements of the developed Korea certification system of cloud services are also proposed.


2017 ◽  
Vol 2 (2) ◽  
Author(s):  
Hartati Hartati ◽  
Fitri Maya Puspita ◽  
Indrawati Indrawati

Along with the changing times, the internet is becoming essential for everyday life. As the internet service providers, ISPs are required to provide a good service so as to give satisfaction to consumers at a low price. However, ISPs are expected to not only take into account customer satisfaction, but also take into account the advantages gained by considering all the factors that exist. Therefore, ISPs are given the option of pricing schemes, namely flat fee, usage-based, and two part tariff pricing schemes to be applied to the utility function as a function of bandwidth decreases with increasing bandwidth to maximize the benefits ISPs with regard to the level of user satisfaction. This study analyzed the two types of customers, namely homogeneous and heterogeneous consumers. Consumers are divided into heterogeneous consumer of willingness to pay (high end and low end) and with different consumption levels (high demand and low demand).In the case of consumers with homogeneous and heterogeneous consumer of willingness to pay (high end and low end), optimal pricing scheme is obtained if the ISP uses a flat fee and a two-part tariff schemes. As for heterogeneous consumers with different consumption levels (high demand and low demand), the scheme of two part tariff is the optimal scheme to generate maximum profits.


Author(s):  
Isaac Odun-Ayo ◽  
Toro-Abasi Williams ◽  
Olusola Abayomi-Alli ◽  
Jamaiah Yahaya

<p><span>Cloud computing is a business paradigm wherein computers and computing related services are provided by Cloud Service Providers to consumers either as software, development platform, or infrastructure. From an economic and business perspective, Cloud services involve cost, ownership quality of service and service level agreements. There are studies on economic and business models of cloud services on the cloud landscape especially in the area of pricing. Despite this, there is still a dearth of papers in this area of study. The objective of this study is to conduct a systematic mapping study to collect all relevant research on economic and business models of Cloud services. A systematic map provides a structured overview in a particular research area. The representation of the mapping process offers unique course-grained overview of the results. The results are presented in terms of research such as evaluation and solution, and contribution such as tools and method utilized. The results showed that there are more publications on pricing models in relation to tools with 6.87% and model with 14.5%, more publications on economic and business implications in terms of method with 11.45%, more publications on Cloud market in term of processes with 6.87%, more papers on security in the area of evaluation with 8.55% and validation research with 6.58%, and more papers on Cloud markets with respect to experience with 4.61% and validation with 5.92%. The research gaps identified in this study should motivate researchers to carry out more mapping studies in the field.</span></p>


Algorithms ◽  
2018 ◽  
Vol 11 (11) ◽  
pp. 186
Author(s):  
Tao Li ◽  
Yan Chen ◽  
Taoying Li

The problem of pricing distribution services is challenging due to the loss in value of product during its distribution process. Four logistics service pricing strategies are constructed in this study, including fixed pricing model, fixed pricing model with time constraints, dynamic pricing model, and dynamic pricing model with time constraints in combination with factors, such as the distribution time, customer satisfaction, optimal pricing, etc. By analyzing the relationship between optimal pricing and key parameters (such as the value of the decay index, the satisfaction of consumers, dispatch time, and the storage cost of the commodity), it is found that the larger the value of the attenuation coefficient, the easier the perishable goods become spoilage, which leads to lower distribution prices and impacts consumer satisfaction. Moreover, the analysis of the average profit of the logistics service providers in these four pricing models shows that the average profit in the dynamic pricing model with time constraints is better. Finally, a numerical experiment is given to support the findings.


Symmetry ◽  
2021 ◽  
Vol 13 (4) ◽  
pp. 563
Author(s):  
Babu Rajendiran ◽  
Jayashree Kanniappan

Nowadays, many business organizations are operating on the cloud environment in order to diminish their operating costs and to select the best service from many cloud providers. The increasing number of Cloud Services available on the market encourages the cloud consumer to be conscious in selecting the most apt Cloud Service Provider that satisfies functionality, as well as QoS parameters. Many disciplines of computer-based applications use standardized ontology to represent information in their fields that indicate the necessity of an ontology-based representation. The proposed generic model can help service consumers to identify QoS parameters interrelations in the cloud services selection ontology during run-time, and for service providers to enhance their business by interpreting the various relations. The ontology has been developed using the intended attributes of QoS from various service providers. A generic model has been developed and it is tested with the developed ontology.


2021 ◽  
Vol 10 (4) ◽  
pp. 117
Author(s):  
Ricardo Reier Forradellas ◽  
Sergio Náñez Alonso ◽  
Javier Jorge Vázquez ◽  
Miguel Ángel Echarte Fernández ◽  
Nicolas Vidal Miró

The global tourism reality is changing, and not only because of the COVID-19 pandemic. This reality is especially representative in countries such as Spain, which are highly dependent on the income generated by the tourism sector. In these destinations, it is necessary to seek innovation and specialization in the sector in order to achieve new business models. This need is even more pressing in destinations overcrowded by the sun and beach effect, as is the case of Mallorca. The proposed work combines the concepts of sports tourism with the development of a wealth-generating business model that will contribute to promoting a tourism that is sustainable, environmentally friendly and deseasonalized. On the other hand, the proposed work will contribute to promoting integration and equality in the participation of women in sports through the development of a model based on the promotion of women’s football. Using the methodology of case analysis, the results of all the approaches outlined are provided, and we obtained a wealth-generation model that is easily replicable and sustainable over time. This work provides a solution to the combination of a sustainable business model that links responsible tourism, the promotion of women’s sport and the generation of wealth.


Author(s):  
E. J. Schwarz ◽  
P. Gregori ◽  
I. Krajger ◽  
M. A. Wdowiak

AbstractIn times of increasing concerns and extensive political debates about social and environmental problems, incumbent firms are obliged to reduce their negative environmental impact by implementing sustainable business model innovation. Yet, realizing more sustainable business model variants entails several complexities and associated challenges that need to be overcome. To support this task, this article takes an entrepreneurship perspective on sustainable business model innovation and combines literature of business models and entrepreneurial lean thinking (ELT). In doing so, it derives a workshop design grounded in contemporary theory with state-of-the-art tools and methods. The workshop is framed as a stage-gate process facilitating the notions of ELT with iterative cycles of ‘create, test, and improve’ and spans the phases of opportunity identification, opportunity evaluation, opportunity development through sustainable business model design, and decision of opportunity exploitation. The article shows that ELT is an appropriate yet underutilized approach for sustainable business modeling. Further, it discusses how the workshop supports opportunities and mitigate pitfalls of ELT for sustainable business modeling. As such, the findings have theoretical implications for the intersection of sustainability and lean approaches in innovation research as well as implications for practitioners by providing a comprehensive framework to support sustainable business model innovation.


2021 ◽  
Vol 13 (2) ◽  
pp. 1010
Author(s):  
Antonio Marín-García ◽  
Irene Gil-Saura ◽  
María Eugenia Ruiz-Molina ◽  
Gloria Berenguer-Contrí

Currently, sustainability emerges as a key element on which the development of competitive advantages for businesses is based. In the dynamic and turbulent environment in which retail companies operate, sustainable practices are posited as an opportunity for their progress and survival. Through this article, it is intended to advance the nature and dimensions of this construct and examine its influence on store equity and consumer satisfaction. Furthermore, this work analyses the moderating effect of gender on these variables and the mediating nature of brand equity in the development of consumer satisfaction. All this is developed through a quantitative study carried out on a sample of 510 consumers of different food retail commercial formats (hypermarkets, supermarkets, and discount stores) in Spain. The technique used for data analysis is partial least squares (PLS) regression. The results show the importance of sustainability and brand equity in the development of consumer satisfaction in the retail sector, with the intensity of its effects being a gender issue. On the other hand, brand equity is positioned as a key element thanks to its mediating effect between sustainability and satisfaction. All of this points to the need to move towards more sustainable business models.


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