An organization wants to reduce upfront costs for IT infrastructure and prefers to be billed based on actual usage. Which cloud computing pricing model best meets their needs?
CapEx pricing model
Reserved pricing model
Consumption-based pricing model
Fixed-rate subscription model
The consumption-based pricing model allows customers to pay only for the resources they actually use, reducing upfront costs and aligning expenses with actual usage. This model is ideal for organizations looking to control costs and scale resources as needed. The reserved pricing model requires a commitment to long-term usage, which may not reduce upfront costs. The CapEx (Capital Expenditure) pricing model involves substantial initial investment in physical infrastructure, contrary to the organization's goal. The fixed-rate subscription model involves paying a set fee regardless of usage, which may not be cost-effective if actual usage varies.
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