Pricing of Cloud Cost Models
Pricing of Cloud Cost Models
Before gaining a complete understanding of cloud cost models, it is necessary to understand what we mean by the word 'cloud'. The cloud is a group of the network, hardware, interface and more importantly, storage that allows the delivery of computing as proper service of its own. Some of the popular cloud services in the industry are social media networking websites like Facebook and Twitter. They are the revolutionary websites which are changing the ways people perceive provision and acceptance of information and business in general.Now, cloud services have a specified cloud infrastructure of their own as a service. This is abbreviated as IaaS. It can serve as a platform as a service, and this is abbreviated as PaaS. More options include software as a service or SaaS, storage as service or STaaS, and security as service or SECaaS. These services which are given out to the public to access it have various schemes for the prices. The costs-based cloud storage is the factor which is responsible for the cloud provider to arrange their provisions and offers. Let us look deeper into this and understand cloud services and its pricing models efficiently.
Why Are Cloud Costing Models Important?
Services provide the customers, various pricing models. Let us understand why.a. The cloud services have various pricing models, and this is a crucial factor for the provider for the provisions that they offer.
b. The schemes for prices must be well suited for both the customer and the service provider.
c. The most important objective for the cloud service providers is to obtain maximum revenue with their price models.
d. Additionally, the service providers try to provide the best quality of services at the price range it offers.
Due to the above factors, pricings affect the business of a service provider, quite naturally. Pricing schemes affect quite a few things like
- User behaviour
- User demand
- Service utilization
- Organizational success and much more.
Cloud Management
Cloud computing is a prototype which allows networking access on-demand to systems that are on a shared network and resources. Customers pay for resources and the network, and the pricing models come into play. Cloud management is a prototype or a model for managing, running, storing and processing of data on the Internet and via the Internet. As mentioned earlier, the different types of models of implementations are:- SaaS
- IaaS
- STaaS
- SECaaS
Apart from the types of implementations, cloud costing can also be categorized into the following price models. They are
- Free Payment
- Plan Payment
- Pay as you use
Overview Of Cloud Computing Resources And Models
According to the statistics, cloud computing and its industry is said to experience a growth of 18% in the past year, and the total worldwide revenue stood to $246.8 billion. Clouds are technically the most preferred platform for networks and applications that retain and serve customers. There exist investors all across the world who adopt cloud services and also spend on them to avail their benefits based on its cost model.There exists companies and firm which sell their SaaS applications to other consumer firms need to bring into line their software as a service and their pricing with the utility to the business customers. They should render useful at the end of the day for they are being purchased for technical support.
Now, many a data centre in the United States offers a range of pricing models, as discussed earlier. On a much broader sense, they offer models for a pure subscription where consumers are charged every month, and the model is sold on a cloud catalogue basis. Customers are charged every month irrespective of whether or not they use the storage services provided.
On another note, a model in which a customer starts with a zero account gets cloud resources on-demand and pays for actually what he or she consumes. This model is typically known as Pay As You Go.
Similarly, another model lists active users based on their consumption and assignment to the cloud service and unlimited access. This is typically known as Pay Per User. Now, a number of cloud service providers offer a combination of all the options mentioned above to keep put in the competition. They have schemes which a consumer can opt for based on their needs and requirements.
Downsides Of Cloud Computing Services
In case of services for infrastructure, consumers refrain from choosing stringent and out of date pricing that is based on hardware. The existing consumers back away from renewing agreements that are worth more than what he providers offer. They also cancel halfway into using the services as there rises demand for utility-based price models which includes platform as a service and software as a service type.Business Tactics In Cloud Computing
However, apart from the usual price models, there are other discounts and promotional offers that a brand will offer to bring in a maximum number of customers and thereby increase their market share and market value.On the same note, the discount offers depend upon a number of factors. They are given below.
a. Area of availability
b. Instance family
c. Region of residence
d. Operating systems involved
Discount methods are a great tactic as they lure in customers. Statistics say that people tend to purchase products that entail discounts way more than schemes which have attractive combinations.
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