The Economics of Cloud Computing

2015 ◽  
pp. 2135-2148 ◽  
Author(s):  
Federico Etro
Keyword(s):  
Cloud Computing ◽  
New Technology ◽  
Fixed Costs ◽  
Substantial Impact ◽  
Market Structures ◽  
The Public ◽  
Marginal Costs ◽  
Job Reallocation ◽  
New Business ◽  
The Cost

This chapter examines the economic impact of the diffusion of a new technology as cloud computing. This will allow firms to rent computing power and storage from service providers, and to pay on demand, with a profound impact on the cost structure of all the industries, turning some of the fixed costs in marginal costs of production. Such a change will have a substantial impact on the incentives to create new business, and through this, on: investments and macroeconomic growth, job creation in all industries and job reallocation in the ICT sector, and public finance accounts, through the direct impact on the public sector spending and the indirect one on the tax revenues. In this study, the author investigates the consequences of the diffusion of cloud computing on market structures and competition and tries to disentangle the above mentioned aspects with a particular focus on a simulation run for the European economy.

The Economics of Cloud Computing

2012 ◽  
pp. 296-309 ◽  
Author(s):  
Federico Etro
Keyword(s):  
Cloud Computing ◽  
New Technology ◽  
Fixed Costs ◽  
Substantial Impact ◽  
Market Structures ◽  
The Public ◽  
Marginal Costs ◽  
Job Reallocation ◽  
New Business ◽  
The Cost

This chapter examines the economic impact of the diffusion of a new technology as cloud computing. This will allow firms to rent computing power and storage from service providers, and to pay on demand, with a profound impact on the cost structure of all the industries, turning some of the fixed costs in marginal costs of production. Such a change will have a substantial impact on the incentives to create new business, and through this, on: investments and macroeconomic growth, job creation in all industries and job reallocation in the ICT sector, and public finance accounts, through the direct impact on the public sector spending and the indirect one on the tax revenues. In this study, the author investigates the consequences of the diffusion of cloud computing on market structures and competition and tries to disentangle the above mentioned aspects with a particular focus on a simulation run for the European economy.

scholarly journals Financial stability management as a determinant of competitive development of agrarian formations

2019 ◽  
pp. 13-18
Author(s):  
Nadiia HRYSHCHUK
Keyword(s):  
Financial Stability ◽  
Production Cost ◽  
New Technology ◽  
Fixed Costs ◽  
Qualitative Characteristic ◽  
Agricultural Enterprises ◽  
Cost Of Production ◽  
Labor Resources ◽  
The Cost

The article investigates financial stability as a qualitative characteristic of functioning of agricultural enterprises in modern conditions, the analysis of indicators of financial stability of the enterprise and determination of its type, as well as the effectiveness of forecasting the financial stability of agricultural enterprises. A number of measures is proposed, which is to reduce the cost of production (cost-saving strategy), which will allow agribusinesses to increase competitiveness in the market due to the introduction of new technology, technologies, more rational the use of both material and labor resources, reducing the proportion of fixed costs in the cost of production, in proportion to the increase in profits and competitive development of agricultural enterprises. The basic condition for ensuring the financial stability of the company is the formation of sufficient amounts of funds that enable them to fully fulfill their obligations to the budget, pay employees, creditors, suppliers.

The Impact of Parcel Characteristics on the Cost of Development Rights to Farmland

1993 ◽  
Vol 22 (2) ◽  
pp. 150-158 ◽  
Author(s):  
Dennis Wichelns ◽  
Jeffrey D. Kline
Keyword(s):  
Social Benefits ◽  
Farmland Preservation ◽  
Urban Centers ◽  
Substantial Impact ◽  
Marginal Costs ◽  
Development Rights ◽  
The Cost ◽  
The Impact ◽  
Farmland Preservation Programs ◽  
Panoramic Views

This paper examines the economic impact of selected farmland characteristics on the appraised value of development rights. Price elasticities are estimated for the size and location of farmland parcels, the amount of road frontage, the existence of panoramic views, and the distance to urban centers. Estimated elasticities suggest that parcel characteristics have a substantial impact on the cost of preserving farmland. For example, the per-acre cost of development rights is estimated to be 53 percent higher on farmland parcels that have a panoramic view of water than on parcels that have no water view. Similarly, the per-acre cost of development rights on a typical 25-acre farm is estimated to be 90 percent higher than on a typical 150-acre farm. Results suggest that the net social benefits obtained through farmland preservation programs may be enhanced by considering the impact of farmland characteristics on the marginal costs of purchasing development rights, when selecting among a set of candidate farms.

A New Distributed Anonymization Protocol with Minimal Loss of Information

2017 ◽  
Vol 7 (1) ◽  
pp. 1-19 ◽  
Author(s):  
Salheddine Kabou ◽  
Sidi Mohamed Benslimane
Keyword(s):  
Cloud Computing ◽  
Personal Information ◽  
New Technology ◽  
Privacy And Security ◽  
Privacy Requirements ◽  
Minimal Loss ◽  
Multiple Data ◽  
New Business ◽  
Significant Obstacle ◽  
Data Subject

Cloud computing represents a new business model which enables diverse benefits such as the sharing of computing resources containing personal information across multiple distributed and private databases. However, privacy and security concerns are a significant obstacle that is preventing the extensive adoption of this new technology. Anonymization is one of the solutions methods that can be used to preserve the privacy of data while still allowing the data to be used.. Most of the existing works use a k-anonymity model for preserving privacy for data subject that offers lower utility. Motivated by this, the authors develop a new distributed anonymization protocol to satisfy multiple data providers privacy requirements based on a k-concealment model that offers a higher utility with less generalisation. The experimental results show that their proposal protocol outperforms the commonly used protocols.

scholarly journals The costs of icebreaking services: an estimation based on Swedish data

2020 ◽  
Vol 19 (1) ◽  
pp. 125-142 ◽  
Author(s):  
Eva Lindborg ◽  
Peter Andersson
Keyword(s):  
Marginal Cost ◽  
Fixed Costs ◽  
External Effects ◽  
Marginal Costs ◽  
Advantages And Disadvantages ◽  
The Social ◽  
The Usa ◽  
The Cost ◽  
Pricing Schemes ◽  
Swedish Data

AbstractIn winter, the sea around Sweden and Finland as well as parts of the waters around Canada, Russia and the USA become ice covered, and ships may require assistance from icebreakers to proceed to their destinations. This paper accordingly analyses the cost structure and estimates the cost of icebreaking operations at sea, including the costs of external effects of the icebreakers’ emissions, and analyses the consequences of different pricing schemes for financing icebreaking services. A regression analysis was carried out based on data from icebreaking services in Sweden over 14 winters from 2001/2002 to 2015/2016. The social marginal cost of an average assistance operation (which may involve more than one ship) is estimated at EUR 6476 and for each assisted ship EUR 5304. The same cost is EUR 907 per running hour for the icebreakers and EUR 1990 per hour a ship is assisted. Each additional nautical mile sailed by an icebreaker costs society EUR 141 and each assisted nautical mile EUR 234. The marginal cost is found not to be related to winter severity. Despite the significant social marginal costs, not including large fixed costs, icebreaking in Sweden and Finland is free of charge. The advantages and disadvantages of four pricing models that can be applied to cover at least parts of the costs to society are discussed. All models could create new distortions, but a price per assisted hour may be worth applying in practice.

The Ambivalent Triumph of Optimism

1993 ◽  
Author(s):  
Garrett Hardin
Keyword(s):  
New Technology ◽  
Human Populations ◽  
The Public ◽  
The Press ◽  
Petroleum Resources ◽  
Simple Question ◽  
Preceding Paragraph ◽  
The Mind ◽  
The Cost ◽  
Near Future

To increase—even to live—human populations require exploitable resources. Concern for the future of our children makes us wonder how long resources will last. Attitudes toward conservation depend largely on information furnished by the press, radio, and television. How good is this information? Mostly it is not very good. We don't have to probe the shoddier representatives of the press to illustrate the fine art of warping attitudes. A single example from a quality source will do. How much petroleum is there in the world? This is not a simple question. Do we want to know the total amount of petroleum resources, both discovered and undiscovered? This is obviously debatable. A more useful base on which to lay plans for the near future is what is called proved reserves, which is defined as the supply "that can be economically produced with current technology at today's prices." Before proceeding further it would be well to call attention to the confusibility of the terms resources and reserves. A creative writer who turned out a novel in which the two principal characters were named Jean Robinson and Jan Robertson would be criticized for causing needless confusion. Unfortunately the analysts of the real world frequently burden the public with terms that, though definitively different, scarcely differ to the eye and ear. Such are resources and reserves. These terms have been used for so long that they can hardly be jettisoned now. When a feeling of imminent confusion sweeps over the reader, he is urged to review the definitions in the preceding paragraph. Even for reserves there is no precise and stable figure. A new technology may lower the cost of taking oil out of the ground. A rise in price will cause the ledger entry for some underground oil to be moved from the category of economically unrecoverable to that of economically recoverable. The scarcity that causes the price to rise "brings oil out of the ground," in the words of optimistic economists. Scarcity, in the mind of some economists, creates more oil. (Geologists know better.) The price of oil is very sensitive to proved reserves, but decidedly insensitive to estimates of ultimate resources.

scholarly journals Improvement of the legal and regulatory framework for accounting in non-material production sector

2019 ◽  
pp. 123-133
Author(s):  
Zenovii-Mykhailo Zadorozhnyi ◽  
Valentyna Yasyshena
Keyword(s):  
Research And Development ◽  
New Technology ◽  
Regulatory Framework ◽  
Competitive Advantages ◽  
Production Sector ◽  
The Public ◽  
Material Production ◽  
New Information ◽  
Engineering Work ◽  
The Cost

Introduction. The reforming of accounting in Ukraine, that is taking place in conformity with demands of European and international institutions, requires amendments and additions to the legal and regulatory framework for accounting in public enterprises. Particular attention should be paid to the regulatory framework for accounting expenditures in such enterprises. Therefore, this issue, which is currently of great importance, has to be examined. Purpose. The purpose of the article is to identify areas of improvements relative to planning, accounting, and cost accounting of research and development as well as engineering projects performed by entities of the public sector. Methods. The methodological basis of the study consists of metaphysical and general methods of research. The historical and logical methods are used for describing development stages of non-material production sector and intangible assets. The methods of analysis, synthesis, and grouping are chosen to examine the investment climate in Ukraine compared other countries. Analysis and statistical methods are applied to highlight the current state and growth of research and technology, and to describe the outcomes of scientific and technological activities in Ukraine. The methods of comparison, analysis, induction and deduction are used to provide a rationale for improving the draft of the Model provision for the planning, accounting and calculation of the cost of research and development and engineering work. Results. The article claims that non-material production plays a significant role in the world economy. Its growth means that information, skills, and knowledge and skills have become a primary factor of production in the today’s society. The authors have established the fact that business entities interested in obtaining new knowledge, new technology and new information, have more competitive advantages. In terms of the promotion of science, innovations, research and development, Ukraine is experiencing an ambivalent situation or even undergoing a crisis. It is noted that the global innovation index (hereinafter – the GII) of Ukraine went up until 2017, yet the research and development intensity of GDP was critically low compared with the EU countries. The authors emphasize that efforts aimed at promoting research and development should be made in the following areas: development and improvement of the legal framework, effective financing, R&D personnel retention and promotion, etc. Particular attention is paid to the issue of improving the draft of the Model Provision for planning, accounting and calculation of the cost of research and development and engineering work (hereinafter – the Model provision) No. 830 of 20 July 1996 approved by the Cabinet of Ministers of Ukraine. In order to implement the Model Provision, the Ministry of Education and Science of Ukraine initiated the establishment of a working group for developing a new draft of the legal act. Discussion. Further efforts should be made to improve research activities in Ukraine in various ways, particularly in financing research and development and engineering activities, and personnel retention and promotion. Today, knowledge and skills play a crucial role as a key strategic resource of any company. Businesses and countries gaining new knowledge, new technology and new information have more competitive advantages in the modern society. The authors suggest taking steps to ensure the effective planning, accounting and cost calculation of research and development and engineering work in the public sector entities, and an in-depth study of the issue. These efforts will help to harmonize terminology and to achieve consistency with the existing legislation, and thus will lead to making sound managerial decisions. Improving the draft of the Model Provision for the planning, accounting and calculation of the cost of research and development and engineering work will make it possible to work with foreign investors and take into consideration international accounting standards. All of these steps will help to launch new high-tech and IT technology that is intangible.

MARKET AND MARKET STRUCTURES OF DIGITAL PRODUCTS

2018 ◽  
Vol 28 (1) ◽  
pp. 217-222
Author(s):  
Marko Janković ◽  
Dejan Dimitrijević ◽  
Raica Milićević
Keyword(s):  
New Economy ◽  
Product Market ◽  
Digital Economy ◽  
Fixed Costs ◽  
Digital Products ◽  
Market Structures ◽  
Marginal Costs ◽  
Digital Product ◽  
Traditional Market

Information and communication technologies (ICTs) have revolutionized the changes in all spheres of social life, especially affecting the changes in the economy in which new realities and a new way of thinking have been brought. The use of ICT in the economy has led to a new economic reality that has reflected on major organizational and other changes in business and requires a different way of behavior. By applying the digital economy to business, new economic rules have been created; new business models and new consumer behavior have been created. The significant influence of these changes is reflected above all on changing the perception of the economic role of the market. In recent years, due to the application of digitization in the operations of an increasing number of companies, there have been dramatic changes in the market. These changes have caused the emergence of electronic markets known as electronic market places, which are directly affected by the change of a few "important" processes and functions in business and society. Traditional market functions of the old economy have been replaced by the market economy of the new economy. In the new economy, the market has different functions, it coordinates buyers and sellers, facilitates the exchange of information and payments, and provides institutional infrastructure for more efficient functioning. These changes, in the new market, have positively reflected on the improvement in economic efficiency, lower transaction and distribution costs, and influenced the more efficient functioning of the market. Unlike the traditional market, the costs of digital products and services are different from the new market. Fixed costs of initial investments in the creation of digital products and services are high, while the marginal costs of its distribution are low. This cost dynamics allows a high production volume with lower average (variable) costs per unit, and both types of costs have a special structure. High fixed costs and low marginal costs on the digital product market have important implications for the market structure of the digital economy. The market of digital products and services has all the characteristics of the market structures of monopoly and oligopoly. The monopoly on the digital product market may or may not produce the very best product, but thanks to the size and economies of scale, it has a great advantage over the competition. The formation of prices for digital products differs from the way in which prices of physical products are formed. Some digital products are available free of charge, (free), which implies an alternative option of securing revenue that is necessarily associated with those products. Other, digital products are linked to other products, digital or physical, in order to somehow avoid problems related to their prices. However, the most common way to determine the price of digital products is to use a licensed approach to both sales methods. Regardless of the way prices are determined, it is important that prices of digital products are not formed on the basis of production costs, but into the basis of the values that customers assign to that product. The exchange of products and services between consumers and businesses, unlike the traditional market, is done by the use of a multi-platform platform that plays the role of intermediaries between different user groups.

Cloud Services for Hotel Industry

2014 ◽  
Vol 905 ◽  
pp. 693-696 ◽  
Author(s):  
Adel Khan Musab ◽  
Chun Lin Li ◽  
Hasan A.H. Naji
Keyword(s):  
Cloud Computing ◽  
Saudi Arabia ◽  
Middle East ◽  
New Technology ◽  
Hotel Industry ◽  
Cloud Services ◽  
Random Selection ◽  
The Other ◽  
The Cost ◽  
Hotel Chain

This research focuses on the major issues that weigh upon a hotel companys decision to implement cloud computing. In this study there was a random selection done for 15 hotels (5 hotels five stars chains, 5 franchised hotels 3 and 4 stars and 5 local hotels). The aim of this paper revolves to (I) Study and analyze the major issues have an impact on hotel companys decision to move to cloud computing. (II) Test the current benefits and implementing cloud computing in the hotel industry. (III) Test the positive and negative issues in adopting cloud computing. In additions, this type of technology is so new for the Middle East specifically in Saudi Arabia and GCC (Gulf Cooperative Countries), where the hotel industry is growing so fast and it is required a new technology to go along with it. The results showed that excluding the hotel chain which use clouding partially, the other 10 hotel of the sample either franchise or local do not implement this technology due to not having knowledge or they are not sure of the cost because of changing from system to another.

scholarly journals Cost Modeling and Risk and Benefit Modeling Approach as a Tools For Decision Making in Adoption Cloud Computing as IT Strategic Business

2014 ◽  
Vol 3 (2) ◽  
pp. 63-68 ◽  
Author(s):  
Rian Rahmanda Putra ◽  
Wanda Kinasih ◽  
Dana Indra Sensuse
Keyword(s):  
Cloud Computing ◽  
New Technology ◽  
Assessment Model ◽  
Third Party ◽  
Computing Services ◽  
It Systems ◽  
Cloud Computing Services ◽  
Readiness To Adopt ◽  
The Cost ◽  
Risk And Benefit

Cloud computing is an innovation that allows the use of IT as a utility based on-demand. Since cloud computing is a new technology, its led to a variety of risks that required an assessment model to assess the organization's readiness to adopt cloud computing. Moreover, by using cloud computing services means organizations or outsourcing involves a third party. Before adopting cloud computing technology, organizations need to consider some of the effects that arise as a result of cloud computing, namely in terms of costs, risks and benefits. To assist organizations to consider the migration of existing IT systems to the cloud, it can be used the cost approach valuation models and risk and benefit. This paper discusses two models of cost-based assessment of risk and benefit modeling and modeling that can be used as a tool to assist organizations in making decisions related to the migration of existing IT systems to the cloud. 

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