Improved cloud computing model of internet pricing schemes based on Cobb-Douglas utility function

Abstract

In this research, cloud computing model on internet pricing scheme based on Cobb-Douglas utility function was formed. The model formed is a combination of cloud computing model, consumer problem model by using Cobb-Douglas utility functions. These model considers the level of customer satisfaction on the sale of a service product and the service quality of the service provider company. The model used is solved by using LINGO 13.0 program to get the optimal solution result. Based on the calculation, the optimal solution was obtained for two types of cases, for the first case is 217.76 and for the second case is 206.97 which is on cloud computing model with usage based pricing scheme and flat fee, respectively. Based on the result of each cases, both Internet Service Provider (ISP) and internet users will get maximum benefit when ISP applied models with utility function compared to the original model.