{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2025,6,19]],"date-time":"2025-06-19T04:28:22Z","timestamp":1750307302221,"version":"3.41.0"},"reference-count":34,"publisher":"Association for Computing Machinery (ACM)","issue":"2","license":[{"start":{"date-parts":[[2011,6,1]],"date-time":"2011-06-01T00:00:00Z","timestamp":1306886400000},"content-version":"vor","delay-in-days":0,"URL":"https:\/\/www.acm.org\/publications\/policies\/copyright_policy#Background"}],"content-domain":{"domain":["dl.acm.org"],"crossmark-restriction":true},"short-container-title":["ACM Trans. Manage. Inf. Syst."],"published-print":{"date-parts":[[2011,6]]},"abstract":"<jats:p>Internet storage services allow businesses to move away from maintaining their own internal storage networks. Service providers currently follow a utility pricing model which translates to them absorbing all the risk that arises from the fluctuating storage needs of their customers. The risk borne by the Internet storage service providers has large revenue implications as Internet startups and smaller companies, which face significant demand stochasticity, constitute an important segment of their clientele. We develop an option pricing mechanism to hedge against this risk and evaluate its effectiveness vis-\u00e0-vis forward contracts. We obtain the conditions under which options dominate forward contracts and the trade-offs involved when the provider has to decide on appropriate pricing mechanisms. Our empirical study uses publicly obtainable traffic data of Amazon S3 clients to validate the analytical results. We show that providers can significantly benefit from including options in their risk-hedging portfolio, especially when there is less variation in the costs faced by the buyers in building their own data networks as opposed to using cloud services.<\/jats:p>","DOI":"10.1145\/1985347.1985351","type":"journal-article","created":{"date-parts":[[2014,4,23]],"date-time":"2014-04-23T13:52:04Z","timestamp":1398261124000},"page":"1-23","update-policy":"https:\/\/doi.org\/10.1145\/crossmark-policy","source":"Crossref","is-referenced-by-count":4,"title":["Risk hedging in storage grid markets"],"prefix":"10.1145","volume":"2","author":[{"given":"Anna Ye","family":"Du","sequence":"first","affiliation":[{"name":"State University of New York at Buffalo, Buffalo, NY"}],"role":[{"role":"author","vocabulary":"crossref"}]},{"given":"Sanjukta","family":"Das","sequence":"additional","affiliation":[{"name":"State University of New York at Buffalo, Buffalo, NY"}],"role":[{"role":"author","vocabulary":"crossref"}]},{"given":"Ram D.","family":"Gopal","sequence":"additional","affiliation":[{"name":"University of Connecticut, Storrs, CT"}],"role":[{"role":"author","vocabulary":"crossref"}]},{"given":"R.","family":"Ramesh","sequence":"additional","affiliation":[{"name":"State University of New York at Buffalo, Buffalo, NY"}],"role":[{"role":"author","vocabulary":"crossref"}]}],"member":"320","published-online":{"date-parts":[[2011,7]]},"reference":[{"key":"e_1_2_2_1_1","unstructured":"Alexa.com. 2011. http:\/\/www.alexa.com\/  Alexa.com. 2011. http:\/\/www.alexa.com\/"},{"key":"e_1_2_2_2_1","unstructured":"Amazon.com. 2009. Success stories. http:\/\/www.amazon.com\/Success-Stories-AWS-home-page\/b\/ref=sc_fe_l_1_3435361_5\/104-1585210-549543?ie=UTF8&node=1822410 11&no=3435361&me=A36L942TSJ2AJA  Amazon.com. 2009. Success stories. http:\/\/www.amazon.com\/Success-Stories-AWS-home-page\/b\/ref=sc_fe_l_1_3435361_5\/104-1585210-549543?ie=UTF8&node=1822410 11&no=3435361&me=A36L942TSJ2AJA"},{"key":"e_1_2_2_3_1","doi-asserted-by":"publisher","DOI":"10.1287\/ijoc.1070.0221"},{"key":"e_1_2_2_4_1","doi-asserted-by":"publisher","DOI":"10.1287\/ijoc.1100.0431"},{"volume-title":"Proceedings of the 1st IEEE\/ACM International Workshop on Grid Computing (GRID'00)","author":"Brooke J.","key":"e_1_2_2_5_1"},{"key":"e_1_2_2_7_1","doi-asserted-by":"publisher","DOI":"10.1109\/CCGRID.2009.97"},{"key":"e_1_2_2_8_1","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.47.5.629.10486"},{"key":"e_1_2_2_9_1","doi-asserted-by":"publisher","DOI":"10.1109\/90.266050"},{"volume-title":"Proceedings of the 22nd International Conference on Distributed Computing Systems (ICDSC'02)","author":"Cooper B.","key":"e_1_2_2_10_1"},{"key":"e_1_2_2_11_1","doi-asserted-by":"publisher","DOI":"10.1287\/isre.1100.0288"},{"key":"e_1_2_2_12_1","doi-asserted-by":"publisher","DOI":"10.1287\/isre.1070.0145"},{"key":"e_1_2_2_13_1","doi-asserted-by":"publisher","DOI":"10.1007\/s10799-007-0034-6"},{"key":"e_1_2_2_14_1","doi-asserted-by":"publisher","DOI":"10.1177\/109434209701100205"},{"volume-title":"Proceedings of the 10th International Symposium on High Performance Distributed Computing (HPDC'10)","author":"Frey J.","key":"e_1_2_2_15_1"},{"key":"e_1_2_2_16_1","unstructured":"Fujiwara I. Aida K. and Ono I. 2009. Market-Based service allocation for distributed computing. Tech. rep. IEICE. http:\/\/www.alab.ip.titech.ac.jp\/~fujiwara\/papers\/090619ieice-cw_paper_fujiwara.pdf  Fujiwara I. Aida K. and Ono I. 2009. Market-Based service allocation for distributed computing. Tech. rep. IEICE. http:\/\/www.alab.ip.titech.ac.jp\/~fujiwara\/papers\/090619ieice-cw_paper_fujiwara.pdf"},{"volume-title":"Proceedings of the Australasian Computer Science Conference.","author":"Heiser G.","key":"e_1_2_2_17_1"},{"key":"e_1_2_2_18_1","unstructured":"Huhns M. and Stephens L. 2000. Multiagent systems and societies of agents. In Multiagent Systems G. Weiss Ed. The MIT Press Cambridge MA 79--120.   Huhns M. and Stephens L. 2000. Multiagent systems and societies of agents. In Multiagent Systems G. Weiss Ed. The MIT Press Cambridge MA 79--120."},{"volume-title":"Futures and Other Derivatives","author":"Hull J. H.","key":"e_1_2_2_19_1"},{"volume-title":"Proceedings of the 1st IEEE\/ACM International Workshop on Grid Computing (GRID'00)","author":"Lalis S.","key":"e_1_2_2_20_1"},{"key":"e_1_2_2_21_1","unstructured":"Lazar A. and Semret N. 1997. Auctions for network resource sharing. Tech. rep. Columbia University.  Lazar A. and Semret N. 1997. Auctions for network resource sharing. Tech. rep. Columbia University."},{"key":"e_1_2_2_22_1","unstructured":"Miller M. and Drexler K. 1998. Markets and computation: Agoric open systems. In The Ecology of Computation B. Huberman Ed. Elsevier Science Publishers The Netherlands.  Miller M. and Drexler K. 1998. Markets and computation: Agoric open systems. In The Ecology of Computation B. Huberman Ed. Elsevier Science Publishers The Netherlands."},{"key":"e_1_2_2_23_1","unstructured":"Motahari-Nezhad H. Stephenson B. and Singhal S. 2009. Outsourcing business to cloud computing services. Tech. rep. HPL-2009-23 Hewlett-Packard. http:\/\/www.hpl.hp.com\/techreports\/2009\/HPL-2009-23.pdf  Motahari-Nezhad H. Stephenson B. and Singhal S. 2009. Outsourcing business to cloud computing services. Tech. rep. HPL-2009-23 Hewlett-Packard. http:\/\/www.hpl.hp.com\/techreports\/2009\/HPL-2009-23.pdf"},{"key":"e_1_2_2_24_1","unstructured":"Nirvanix.com. 2011. Nirvanix homepage. http:\/\/www.nirvanix.com\/  Nirvanix.com. 2011. Nirvanix homepage. http:\/\/www.nirvanix.com\/"},{"key":"e_1_2_2_25_1","unstructured":"Quantcast.com. 2011. http:\/\/www.quantcast.com\/faq.jsp&num;How_do_you_collect_your_data.3F  Quantcast.com. 2011. http:\/\/www.quantcast.com\/faq.jsp&num;How_do_you_collect_your_data.3F"},{"key":"e_1_2_2_26_1","doi-asserted-by":"publisher","DOI":"10.1145\/288994.289000"},{"key":"e_1_2_2_27_1","doi-asserted-by":"publisher","DOI":"10.1109\/TC.1980.1675516"},{"key":"e_1_2_2_28_1","unstructured":"SmugMug.com. 2009a. http:\/\/blogs.smugmug.com\/don\/2006\/11\/10\/amazon-s3-show-me-the-money\/  SmugMug.com. 2009a. http:\/\/blogs.smugmug.com\/don\/2006\/11\/10\/amazon-s3-show-me-the-money\/"},{"key":"e_1_2_2_29_1","unstructured":"SmugMug.com. 2009b. Comments by J.S. http:\/\/blogs.smugmug.com\/don\/2006\/11\/10\/amazon -s3-show-me-the-money\/  SmugMug.com. 2009b. Comments by J.S. http:\/\/blogs.smugmug.com\/don\/2006\/11\/10\/amazon -s3-show-me-the-money\/"},{"key":"e_1_2_2_30_1","doi-asserted-by":"publisher","DOI":"10.1016\/j.ejor.2004.11.017"},{"key":"e_1_2_2_31_1","unstructured":"Staimer M. 2008. The compelling price\/performance economics of the nirvanix storage delivery network versus in-house storage. http:\/\/www.nirvanix.com\/pdfs\/Nirvanix_vs_In-house_Storage.pdf  Staimer M. 2008. The compelling price\/performance economics of the nirvanix storage delivery network versus in-house storage. http:\/\/www.nirvanix.com\/pdfs\/Nirvanix_vs_In-house_Storage.pdf"},{"key":"e_1_2_2_32_1","unstructured":"Staten J. Yates S. Gillett F. Saleh W. and Dines R. 2008. Is cloud computing ready for the enterprise&quest; Res. rep. Forrester.  Staten J. Yates S. Gillett F. Saleh W. and Dines R. 2008. Is cloud computing ready for the enterprise&quest; Res. rep. Forrester."},{"volume-title":"Proceedings of the 3rd International Conference on Parallel and Distributed Information Systems. 58--67","author":"Stonebraker M.","key":"e_1_2_2_33_1"},{"key":"e_1_2_2_34_1","doi-asserted-by":"publisher","DOI":"10.1109\/32.121753"},{"key":"e_1_2_2_35_1","doi-asserted-by":"publisher","DOI":"10.1287\/opre.40.5.831"}],"container-title":["ACM Transactions on Management Information Systems"],"original-title":[],"language":"en","link":[{"URL":"https:\/\/dl.acm.org\/doi\/10.1145\/1985347.1985351","content-type":"unspecified","content-version":"vor","intended-application":"text-mining"},{"URL":"https:\/\/dl.acm.org\/doi\/pdf\/10.1145\/1985347.1985351","content-type":"unspecified","content-version":"vor","intended-application":"similarity-checking"}],"deposited":{"date-parts":[[2025,6,18]],"date-time":"2025-06-18T10:59:55Z","timestamp":1750244395000},"score":1,"resource":{"primary":{"URL":"https:\/\/dl.acm.org\/doi\/10.1145\/1985347.1985351"}},"subtitle":["Do options add value to forwards?"],"short-title":[],"issued":{"date-parts":[[2011,6]]},"references-count":34,"journal-issue":{"issue":"2","published-print":{"date-parts":[[2011,6]]}},"alternative-id":["10.1145\/1985347.1985351"],"URL":"https:\/\/doi.org\/10.1145\/1985347.1985351","relation":{},"ISSN":["2158-656X","2158-6578"],"issn-type":[{"type":"print","value":"2158-656X"},{"type":"electronic","value":"2158-6578"}],"subject":[],"published":{"date-parts":[[2011,6]]},"assertion":[{"value":"2010-08-01","order":0,"name":"received","label":"Received","group":{"name":"publication_history","label":"Publication History"}},{"value":"2011-05-01","order":1,"name":"accepted","label":"Accepted","group":{"name":"publication_history","label":"Publication History"}},{"value":"2011-07-01","order":2,"name":"published","label":"Published","group":{"name":"publication_history","label":"Publication History"}}]}}