A company plans to migrate its services to the cloud to minimize costs. They wish to avoid large upfront hardware investments and prefer paying based on actual resource utilization. Which pricing model best aligns with their requirements?
Consumption-based model
Capital expenditure model
Fixed-cost model
Long-term reservation model
The consumption-based model allows organizations to pay for cloud services based on actual usage, eliminating the need for significant upfront capital expenditures on hardware. This approach offers cost efficiency and scalability, as companies are only billed for the resources they consume. The capital expenditure model involves substantial upfront costs for purchasing and maintaining hardware, which the company wants to avoid. The long-term reservation model requires a commitment over an extended period, reducing flexibility. The fixed-cost model entails paying a set fee regardless of usage, potentially leading to higher costs if resources are underutilized.
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