The allocation of computer resources—is pricing the answer?

Abstract

The widespread use of complex third generation computing systems has led to a much broader concern about the means by which the resources of these systems are allocated among the user community. One means that is suggested more and more frequently is a pricing procedure. In this paper the manner in which one would like to allocate computing resources is considered, and then the extent to which a pricing mechanism fits this mold is discussed. Inasmuch as pricing must serve as a rationing mechanism at times, consideration is given to the means by which prices can be adjusted flexibly in order to make a dynamic allocation of resources. Consideration is also given to the means by which users can be insulated from the harmful effects of frequent price fluctuations. Although the subject of pricing has been given a lot of attention recently, a number of misconceptions persist about its purpose and its operation. An attempt is made to clarify some of these misunderstandings and to highlight the advantages and disadvantages of pricing. Two illustrative pricing systems are also discussed in order to demonstrate the applicability of pricing in quite different environments.

Notes on Cloud computing principles

“…The research field of computational economies have tackled these problems as far back as the 1960s and 70s [18][19][20]. More recent computational market designs include [21][22][23].…”

Markets as Global Scheduling Mechanisms: The Current State

“…When the so-called pricing of computing resources started to attract increasing attention in the late 1960s, it was quickly acknowledged that pricing can be seen as a kind of scheduling mechanism and that both concern allocation of resources [16]. 2 The advent of networks of computers did not alienate scheduling from economics, and scheduling for distributed computer systems has also been recognized as an activity under resource management [2,12].…”

“…Unfortunately, this information is usually available only to the user. In fact, utilization of users' private information has been recognized as one of the advantages of pricing over other types of scheduling [16].…”

“…Markets do not prevail in all types of economies, and economies are not synonymous with markets. 2 Pricing stepped into the limelight because the most common default scheduling mechanism, first-come, first-served, was often combined with additional rules, indicating that it alone was not meeting needs [16].…”

A planning and cost allocation procedure for computer system management

“…Furthermore , it should be pointed out that much research has been devoted to viewing the IPD as a Responsibi l i ty Center in terms of al locat ing 1 2 3 comput ing faci l i t ies for a given des i gn . ' ' For example , a 1970 paper of N i e l sen 4 has suggested flexible pricing for obtaining a bet ter ut i l izat ion of a comput ing center .…”