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Real option valuation on grid computing

delete2008-12-01
delete13
PRE
AI
J
Juheng Zhang
S
Subhajyoti Bandyopadhyay
P
Pirarnuthu, Selwyn *
DOI:10.1016/j.dss.2008.07.003delete
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Abstract

Abstract

En 中文
Grid computing essentially involves transparent access to distributed computing where computing resources are pooled and shared both within and among organizations. Grid computing is increasingly becoming a viable option for businesses looking for high-end computing requirements for relatively short periods of time. We analyze some economic decision criteria for a grid computing provider wishing to provide such a service to businesses. Given the large amount of uncertainty in prices and demand (which is demonstrated through Monte Carlo simulations) for such a service, a real options valuation technique is particularly suitable for such an exercise. We study the dynamics of grid computing from an economic perspective. Specifically, we consider a monopolist scenario providing two kinds of service, one of which might preempt the other. (c) 2008 Elsevier B.V. All rights reserved.
Keywords:
Grid computing
Real option valuation

Journal

Decision Support Systems cover
Decision Support Systems
IF:
6.8
Papers:
3.8K
Citations:
1.5W

Organization

State University System of Florida cover
State University System of Florida
Scholars:
12.7W
Papers: 10.9W
Citations: 130