Microsoft Is Applying Patent For Performance-Based Pricing For Cloud Computing

Microsoft is competing with market leader Amazon in providing cloud services. They are already in price war and delivering reliable and top notch performance is a must have in this business. The cloud pricing scheme differs on performance levels and the new patent from Microsoft researchers revealed a new pricing approach where customers can either bid a price they’re willing to pay or to be quoted a price based on the system’s estimate of the resources needed to deliver that performance. It will be interesting to see if Microsoft delivers this pricing scheme to its customers.


Described are performance-based pricing models for pricing execution of a client job in a cloud service. Client-provided performance-related parameters are used to determine a price. The price may be a minimum bid price that is evaluated against a bid received from client bidder to accept or reject the bid. Alternatively, the price may be returned as a quote. For batch application-type jobs, performance parameters include a work volume parameter and a deadline or the like. For an interactive-type application job, example performance-related parameters may include an average load parameter, a peak load parameter, an acceptance rate parameter, a minimum capacity parameter, a maximum capacity parameter, and/or a time window parameter over which load is specified.

Source: Information Week