Spot instance similarity and substitution effect in cloud spot market

Vivek Kumar Singh, Shivendu Shivendu, Kaushik Dutta

Research output: Contribution to journalArticlepeer-review

Abstract

Customers in cloud spot market choose from a set of computing resources (spot instances) some of which are same along one or more of the dimensions of hardware configuration, hardware capacity, software, and location (or zones within the same region). While prior research in IS has shown that cloud market consumers do not substitute identical spot instances across distant locations or regions due to costs associated with latency, there is a paucity of research examining spot price dynamics of similar instances which are same along only some of the dimensions (or characteristics) within a region. Using the economic theory of substitution in production and consumption as our theoretical lens, our empirical analysis finds evidence that consumers substitute similar computing resources in the spot market. Further, we find that while hardware configuration similarity between two instances is positively related to spot …

Original languageAmerican English
JournalDecision Support Systems
DOIs
StatePublished - May 30 2022

Disciplines

  • Business

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