Definition

computing arbitrage

Computing arbitrage is a cloud services business model in which a company purchases computing resources -- typically a large block of bandwidth – at wholesale rates and offers it in smaller packages, with a greater cumulative value, to other companies.

Computing arbitrage, cloud aggregation and cloud intermediation are three types of cloud service brokerages (CSB). Cloud service brokerages are businesses that serve as intermediaries between cloud service providers and service customers to help negotiate the complexities of cloud services.

Arbitrage, in general, is the practice of buying something to resell immediately at a profit. The term originates from the financial sector, where it usually refers to transactions with shares or currencies.

This was last updated in September 2011

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