Pricing reserved and On-Demand Schemes of cloud computing based on option pricing model

In this paper, we treat the pricing of the cloud resources as an option pricing problem. The pricing of the Reserved scheme can be solved as a European option problem and the pricing of the On-Demand Scheme can be solved as an American option problem. We adopt the method of Trinomial tree to resolve the European option problem and the American option problem. The model we proposed can calculate the pricing of those two schemes according to the investment and contract time and the prices can satisfy the interests of both resource providers and users.