Cost Analysis of Current Grids and Its Implications for Future Grid Markets
- Cite this paper as:
- Risch M., Altmann J. (2008) Cost Analysis of Current Grids and Its Implications for Future Grid Markets. In: Altmann J., Neumann D., Fahringer T. (eds) Grid Economics and Business Models. GECON 2008. Lecture Notes in Computer Science, vol 5206. Springer, Berlin, Heidelberg
Commercial Grid markets have been a topic of research for many years. Many claims about the advantages of trading computing resources on markets have been made. However, due to a lack of Grid computing offerings, these claims could not be verified. This paper analyzes the question whether using the Grid is financially advantageous, using the Amazon.com EC2 service as a reference. To perform this analysis, the costs of computing resources in different usage scenarios are calculated, if Grid resources and in-house resources are used. The comparison of the costs reveals that while the Grid is cheaper in the short term, it is not a good investment in the long term and, thus, the existence of a Grid economy will not lead to an end of ownership but rather to a reduction in in-house resources and more efficient resource usage.
KeywordsCommercial Grids Grid Computing Business Models Cost Modeling Capacity Planning Grid Economics Utility Computing Markets
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