Title: Grid resources valuation with fuzzy real option

Authors: David Allenotor, Ruppa K. Thulasiram

Addresses: Department of Computer Science, University of Manitoba, R3T 2N2, Canada. ' Department of Computer Science, University of Manitoba, R3T 2N2, Canada

Abstract: In this study, we model pricing of grid/distributed computing resources as a problem of real option pricing. Grid resources are non-storable compute commodities (e.g., CPU cycles, memory, etc.). The non-storable characteristic feature of the grid resources hinders it from fitting into a risk-adjusted spot price model for pricing financial options. Grid resources users pay upfront to acquire and use grid compute cycles in the future, for example, six months. The user expects a high and acceptable degree of satisfaction expressed as the quality of service (QoS) assurance. This requirement further imposes service constraints on the grid because it must provide a user-acceptable QoS guarantee to compensate for the upfront value. This study integrates three threads of our research; pricing the grid compute cycles as a problem of real option pricing, modelling grid resources spot price using a discrete time approach, and addressing uncertainty constraints in the provision of QoS using fuzzy logic. We have proved the feasibility of this model through experiments and we have presented some of our pricing results and discussed them.

Keywords: grid computing; grid resource pricing; financial options modelling; fuzzy real options; QoS; quality of service; distributed computing; spot price models; uncertainty constraints; fuzzy logic.

DOI: 10.1504/IJHPCN.2011.038704

International Journal of High Performance Computing and Networking, 2011 Vol.7 No.1, pp.1 - 7

Published online: 21 Mar 2015 *

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