Why Should Hosted Service Providers Consider Pay-As-You-Go Models?
"Pay-as-you-go." The term, which originated in the US between 1830 and 1840, is the most popular payment model in the present time. Many businesses, especially small and medium ones, prefer this model due to its several benefits. For starters, they pay only that amount based on a product or service they consume or use (usage-based pricing). By doing that they can meet customer demand and remain innovative. In the era of cloud computing, this pricing model is perfect for Hosted Service Providers (HSPs) and Cloud Service Providers of all sizes and types. Because they will only pay for actual resource consumption. Here are some reasons why the pay as you go pricing model is best for HSPs and CSPs: 1. Cost Efficiency Traditional pricing models (such as flat rate pricing) HSPs are at risk of paying for unused services. However, the pay as you go pricing model (alternatively, payg model or usage-based pricing model) eliminates that. By using the pay as you go model, cloud provid...