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The Consumption-Based Model

Cloud service providers operate on a consumption-based model, which means that end users only pay for the resources that they use. Whatever they use is what they pay for. This is the long and short of it.


In this lecture, you’re being introduced to the consumption-based model as it is utilized by cloud service providers. You’ll learn that this model is characterized by a pay-for-what-you-use approach, meaning that you, as the customer, will only be charged for the resources you actually utilize.

The lecture highlights the key benefits of this model, including the absence of upfront costs, negating the necessity for you to purchase or manage any infrastructure on your own. This is because the consumption-based model operates on a pay-as-you-go basis.

Additionally, you’ll understand that this model is flexible. It allows you to scale up by paying for additional resources as your needs grow, and conversely, to scale down, ceasing to pay for resources when they’re no longer needed. This aspect of the consumption-based model is crucial in providing cost-efficiency and flexibility, especially when compared to traditional models that might require substantial initial investments and ongoing costs regardless of actual usage.

By the end of the lecture, you should have a clear understanding of the fundamental concept of the consumption-based model in the context of cloud services.

© 2023 Thomas J Mitchell / TomTeachesIT