Economic Impacts of Fog Computing on Cloud Service Providers

Abstract

Fog computing, a paradigm that extends cloud computing to the edge of the network, introduces significant economic implications for cloud service providers (CSPs). By decentralizing computing resources closer to end-users and IoT devices, fog computing reduces latency, improves bandwidth efficiency, and enhances user experience. This paper examines the economic impacts of fog computing on CSPs, focusing on cost optimization, revenue generation opportunities, and market competitiveness. Key factors such as infrastructure investment, operational efficiency, service differentiation, and pricing strategies are analyzed to understand how fog computing influences the business models of CSPs. Through a comprehensive review of existing literature and case studies, this paper provides insights into the strategic considerations and economic outcomes that CSPs must navigate in adopting fog computing technologies.