With the growing number of cloud providers offering a variety of on-demand services, the process of adopting cloud and selecting a cloud provider is becoming laborious and time consuming involving complex and lengthy negotiations to mediate user requirements with that of cloud Service Level Agreement (SLA) provision. To make the method more efficient, there is a need for an effective, dynamic,
... [Show full abstract] and flexible automated approach on negotiation for resolving conflicts and mediating user requirements in SLAs. We contribute to a novel method for automated negotiation, which draws inspiration from two economic concepts - Pareto optimality and Bayesian updating. We describe a model which implements bilateral and multiple attribute negotiations. We exemplify the effectiveness of the approach using scenarios.