Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
552404 | Decision Support Systems | 2008 | 11 Pages |
Grid computing essentially involves transparent access to distributed computing where computing resources are pooled and shared both within and among organizations. Grid computing is increasingly becoming a viable option for businesses looking for high-end computing requirements for relatively short periods of time. We analyze some economic decision criteria for a grid computing provider wishing to provide such a service to businesses. Given the large amount of uncertainty in prices and demand (which is demonstrated through Monte Carlo simulations) for such a service, a real options valuation technique is particularly suitable for such an exercise. We study the dynamics of grid computing from an economic perspective. Specifically, we consider a monopolist scenario providing two kinds of service, one of which might preempt the other.