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Pricing web services

: Günther, O.; Tamm, G.; Leymann, F.


International journal of business process integration and management : IJBPIM 2 (2007), No.2, pp.132-140
ISSN: 1741-8771
ISSN: 1741-8763
Journal Article
Fraunhofer ISST ()

This paper focuses on the challenges associated with composing and pricing web services. We present the results of an online experiment, where subjects were confronted with a variety of choices and decisions relating to web service markets and service composition. Our analysis shows that people expect the price of a composite web service to be lower than the sum of the prices of the elementary services, that is, users are not willing to pay for aggregation by a third party. To obtain a viable business model for composite web services, non-standard pricing mechanisms, such as auctions and negotiations, possibly supported by electronic agents, have to be taken into consideration. Usage-based pricing schemes, combined with an option to switch to a flat subscription, seem most appropriate to penetrate the developing market for web services.