The method of calculating the resources of cloud computing can be a daunting and complicated task as the technology itself. Not only the users need to face different types of pricing structures followed by different cloud providers, but they also have to find a reasonable way to determine the resources that will be useful in the future. One of the ways to estimate the cloud computing usage is to check the amount of data used in the past. For example, while going through the electricity bills of the past year, one can get a good picture of the expenses and what the costs will be like in the few upcoming months. Keeping in mind the complexities that have arisen, the researchers from the University at Buffalo School of Management has developed an algorithm that the cloud computing service providers can use to establish pricing and allocate resources.

The study has also provided with the information that companies like Amazon, Google, or VMWare can use the algorithm to determine the resources necessary to provide services to their customers and the charges they want to implement for the service in the service-level agreements. Other than that, customers who use cloud computing service can also avail the algorithm to negotiate the price.

The researchers have conducted a substantial study that uses the real-world server log data that helps validate their research work. With the help of the research, the providers can customize resources for each client rather than relying on the current strategy in place.