Cost Analysis of Current Grids and Its Implications for Future Grid Markets

Conference paper
Part of the Lecture Notes in Computer Science book series (LNCS, volume 5206)


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 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.


Commercial Grids Grid Computing Business Models Cost Modeling Capacity Planning Grid Economics Utility Computing Markets 


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Copyright information

© Springer-Verlag Berlin Heidelberg 2008

Authors and Affiliations

  1. 1.School of Information TechnologyInternational University in GermanyBruchsalGermany

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