Frank Gillett: Determining the right pricing models for a cloud-based service

Cloud Computing Conference - Cloud Slam 2009.
Abstract. Vendor strategists and marketers are embracing a wide variety of cloud computing technologies and business models. There are several buyer motivations for embracing cloud concepts, including: 1) faster deployment times; 2) converting CapEx to OpEx, 3) matching payments to value creation, and 4) variable capacity and expenses. Given the variety of motivations and buyers, it is unlikely that there is one ideal pricing model for cloud services. Choosing the wrong pricing model for a cloud service can turn off desirable prospects and draw unattractive customers. Matching the pricing model to the target customers is a key element to creating a successful cloud service.

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