Coordination strategies in a cloud computing service supply chain under the duopoly market

Abstract

Nowadays, cloud computing has become a very hot topic in the IT industry. We study a cloud computing service supply chain consisting of one application infrastructure provider (AIP) and two competing application service providers (ASPs). As a result of longitudinal and transverse competitions, the efficiency of integration is always difficult to achieve in the distributed cloud computing service supply chain. Therefore, how to coordinate the cloud computing service supply chain under the duopoly market to achieve the efficiency of integration is of great importance to the cloud computing industry. We develop and evaluate four situations. We analyze the reasons that the wholesale price contract and revenue-sharing contract can’t achieve coordination effectively and propose all-quantity discount contract.