Dynamic Cloud Pricing for Revenue Maximization
“Amazon's spot price is unlikely to be set according to market supply and demand. Rather, price oscillates within a very narrow band most of the time, which is more likely to be an artifact of some pricing algorithm with predetermined reserve price.”
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- 2026-10-10
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Deconstructing Amazon EC2 Spot Instance Pricing dants.github.io
“Cloud providers possessing large quantities of spare capacity must either incentivize clients to purchase it or suffer losses. Amazon is the first cloud provider to address this challenge, by allowing clients to bid on spare capacity and by granting resources to bidders while…
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Usage Patterns and the Economics of the Public Cloud mc4f.ee
“We examine the economics of demand and supply in cloud computing. (…) These results explain why fixed prices currently prevail despite the seeming need for time-varying dynamics. Examining the actual CPU utilization provides a lens into the future. (…) demand fluctuations…
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Pricing of Service in Clouds: Optimal Response and Strategic Interactions sigmetrics.org
“How should the consumer modulate its demand to optimize its profits? (…) How should the provider and consumer negotiate the specific pricing structure they will employ?” Covers non-linear models, tiered pricing, elastic demand, consumer et provider strategies.
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Maximizing Profit of Cloud Brokers under Quantized Billing Cycles: a Dynamic Pricing Strategy based on Ski-Rental… arxiv.org
“The key idea of our algorithms is to use pricing signal to regulate user demand. One may argue that such an algorithm gives poor service to the user as it pushes tasks out of the queue in order to maximize cloud broker's profit.”
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Use-cases for cloud services news.ycombinator.com
The reason usage-based pricing makes even more sense for cloud services: to optimize ROI, keep all regular workload in traditional architecture and reserve cloud computing for elastic and experimental projects.
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History of Spot Instances spot.rackspace.com
From AWS's original auction-based market (2009-2017) to provider-managed pricing across all major clouds today. Documents how transparent bidding was replaced by opaque algorithms.
Billing › Marketplace > Cloud Resources: ““Amazon's spot price is unlikely to be set according to market supply and demand. Rather, price oscillates within a very narrow band most of the time, which is more likely to be an artifact of some pricing algorithm with predetermined reserve price.””