Cloud computing is rapidly growing and many more cloud providers are emerging. Cost efficiency and resource cost maximization become two major concerns of cloud providers to remain competitive while making profit. The profit maximization problem in federated cloud environments cooperate to increase the degree of multiplexing has been investigated. Admission control mechanisms tailored within a Profit management framework to maximize resource cost has been proposed. Existing abstractions for in-memory storage on clusters, such as distributed shared memory, keyvalue stores, databases, and Piccolo, offer an interface based on fine-grained updates to mutable state (e.g., cells in a table). With this interface, the only ways to provide fault tolerance are to replicate the data across machines or to log updates across machines. Where various pricing plans in multiple marketplaces are supported by the provider an auction-based dynamic pricing mechanism suitable for selling the spare capacity of the data center. A realization of the proposed dynamic pricing mechanism within a pricing as a service framework. Cost effective resource allocation based on following strategies are Cost Efficiency of the Cloud: Cost reductions and profit increases, Pay-as-you-go pricing, Implications of multi tenancy. Scheduling and resource allocation as a cost efficient solution: Exploitation of application characteristics, Explicit consideration of user experience/satisfaction