Pricing model for delivery of cloud computing data infrastructure services

Cloud computing provides a means for developing economies to improve their global competitiveness. This is because it is a combination of infrastructure, technology innovation and technology readiness. Private organisations in the developing economy of context, believe there is a sizeable market to be served. The key challenge is to do this effectively at a price that is not only affordable but economically viable. This is because it is believed that providing cloud services in the developing economy would cost more that it would in developed economies. This paper takes a risk-neutral approach, based on cost-plus pricing strategy to develop a model to help cloud providers build a case in this regard. The resulting model was then applied to a number of services and revealed that indeed providing cloud services in a developing economy would not be competitive without a public-private partnership in the areas of power and broadband internet.