A subscription is a pricing model where customers are charged a fixed price by the service provider for using the cloud computing services for a fixed time period. These subscriptions are typically on a monthly or yearly basis but can also be hourly, weekly, quarterly, half-yearly and so on. Subscription-based pricing models have become popular among service providers while delivering their cloud computing services over the Internet. A subscription to the cloud services is only ideal when the customer requires cloud computing services for a longer duration.
Points to Remember
- A subscription works much similar to that of a monthly billing system commonly seen in the utility billing. However, in a subscription-based pricing model, a customer has the liberty to renew or cancel it at the end of every cycle whether monthly or yearly.
- In a subscription, payments are made in advance by the customers prior to the delivery of cloud computing services. Subscription prices are highly competitive, allowing customers to take advantage of various discounts offered by the service providers.