Users who need a highly predictable bill could pre-allocate X
resources for $ ("special deal" like $9 / month). It tells the
supplier: produce this much at a given future date for the now agreed
price. Supplier profits from planing stability, buyer profits from
price and supply stability.

Incentive for Google is profit ;-) If Google allows price inflation on
scarce resources users will buy less. If they add resources they can
sell more and profit more. Price stability should not be a big problem
due to the distributive nature of the cloud.

On Sep 10, 8:44 pm, Jeff Schnitzer <[email protected]> wrote:
> Amazon does something like this for its excess capacity:
>
> http://aws.amazon.com/ec2/spot-instances/
>
> ...but it's just for excess capacity.  I wouldn't want this kind of
> behavior for my core usage because it would make my bill highly
> unpredictable.  And it does not incentivize Google to add more
> resources to the cluster.
>
> Jeff
>
>
>
>
>
>
>
> On Sat, Sep 10, 2011 at 10:39 AM, gk <[email protected]> wrote:
> > Pricing should be as follows:
>
> > Calculate a price of resources using the demand / availability of
> > those resources in the cloud:
>
> > - if Google has more of resource X than users demand, the price for
> > that resource would go down and free quota up.
> > - if users demand more of resource X than Google has, the price for
> > that resource would go up and free quota down.
>
> > Pricing model:
>
> > GAE users would act as buyers and resources in the cloud as suppliers.
>
> > - Suppliers (resources producers in the cloud) set the price of the
> > resource above the current market price.
> > - Supplier decreases the price until resource is sold - but a supplier
> > nevers sells under the price of (production cost + Google profit
> > margin).
> > - Google continously "buys" certain amounts of the resource and
> > declares it to be a "shared good" - that is the free quota for each
> > App Engine.
>
> > Users act as buyers and buy using a model of their own choice.
>
> > - Some would never buy any resource - but want to use free quota.
> > - Some would spend $ in a month / week / day / hour / minute / second
> > on a specific resource.
> > - Some would spend $ in a month / week / day / hour / minute / second
> > on any resource.
> > - Some would spend $ in a month / week / day / hour / minute / second
> > on all resources.
> > - Some would buy whenever the price is under $
> > - Some would buy certain amounts in a given time period.
> > - Some would always buy the resource.
>
> > In this way the GAE users can buy according to their need (production
> > cost, if any + profit margin, if any).
>
> > Is this not the logical solution for the "pricing problem"?
>
> > Mix this with a "Market for App Engine Apps" and BOOM :-)
>
> > --
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