Title: Pricing web services
Authors: Oliver Gunther, Gerrit Tamm, Frank Leymann
Addresses: Institute of Information Systems, Humboldt-Universitat zu Berlin, Spandauer Straβe 1, Berlin 10178, Germany. ' Institute of Information Systems, Humboldt-Universitat zu Berlin, Spandauer Straβe 1, Berlin 10178, Germany. ' Institut fur Architektur von Anwendungssystemen (IAAS), Universitat Stuttgart, Universitatsstraβe 38, Stuttgart 70569, Germany
Abstract: This paper focuses on the challenges associated with composing and pricing web services. We present the results of an online experiment, where subjects were confronted with a variety of choices and decisions relating to web service markets and service composition. Our analysis shows that people expect the price of a composite web service to be lower than the sum of the prices of the elementary services, that is, users are not willing to pay for aggregation by a third party. To obtain a viable business model for composite web services, non-standard pricing mechanisms, such as auctions and negotiations, possibly supported by electronic agents, have to be taken into consideration. Usage-based pricing schemes, combined with an option to switch to a flat subscription, seem most appropriate to penetrate the developing market for web services.
Keywords: composite web services; pricing mechanisms; service composition; web-based; service-oriented architecture; SOA; auctions; negotiations.
International Journal of Business Process Integration and Management, 2007 Vol.2 No.2, pp.132 - 140
Published online: 18 Sep 2007 *Full-text access for editors Access for subscribers Purchase this article Comment on this article