Overall demand for cloud computing in all its guises will grow 18% this year to $246.8 billion in total worldwide revenue from $209.2 billion, according to a new forecast from market research firm Gartner. With the cloud being the preferred platform for apps that win, serve, and retain customers, adoption of cloud services and spending on cloud services are both up.
For companies offering SaaS applications, aligning pricing with the value delivered to customers is crucial. Cloud pricing models vary widely, including:
- Subscription-Based Pricing: Charges are billed monthly based on the number of resources or licenses ordered, regardless of usage.
- Pay-As-You-Go: Customers start with a zero balance and pay for cloud resources based on actual consumption.
- Pay-Per-User: Pricing is based on the number of active users assigned to a cloud subscription.
Many cloud providers offer a mix of these models with discount options to attract customers.
For infrastructure services, customers expect utility-style pricing, avoiding outdated hardware-based models. Providers use various pricing strategies, such as:
- AWS Consolidated Billing: Aggregates charges for multiple accounts to optimize costs.
- AWS Reserved Instances: Discount coupons for instances meeting specific criteria (region, availability zone, instance family, OS).
- Google Sustained Use Discounts: Price reductions for continuous usage.
- Microsoft Enterprise Agreement: Discounts ranging from 15-45% based on committed usage levels.
Whether you are a cloud provider with dynamic product offerings to monetize your end-to-end process or a partner reselling the cloud services with the partnership programs or an enterprise that adopts a secure cloud computing environment that is cost-effective by leveraging lower costs based on the enterprise discounts or tiered pricing model, Jamcracker offers a complete cloud management suite to accomplish your goal, and manage revenue settlement between channel partners.