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Ayoola Ogunleye
Ayoola Ogunleye

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Consumption Based pricing

What is consumption based pricing?

Consumption based pricing (pay as you go) is a billing model where you only pay for the exact amount of resources you need.

Example

If you used a lot of resources for that particular period you pay for the goods according to what you got, and if you got less you also pay for it.

An everyday example

1-paying of school fess
2-buying of groceries
3-payment for electricity bills

Why cloud uses consumption based pricing.

  • No upfront cost
  • Cost scale with your usage
  • It is very flexible

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