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Cloud Billing : Monetization Models | Subscription Based | Usage Based Billing Models for Cloud Service Providers

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John Katrick
John Katrick

Jamcracker supports flexible cloud monetization models that can handle subscription based, usage based , user based models or a combination of models for CSPs (Cloud Service Providers)

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Cloud Billing - Monetization
Cloud Monetization Models Cloud Monetization Models Subscription model (Company provisioning) Subscription model (User provisioning) Pay As You Go (Usage based) Combination of the above models
Subscription Based Billing (Company Provisioning)
Subscription Model (Company Provisioning) Concept: Flat Rate Billing , typically monthly Recurring Revenue. Pros: Suits CSPs moving to the cloud as they understand that SaaS is generally a recurring revenue business Suits cloud consumers instead of upfront investments on licenses + maintenance fees Cons: Inadequate for providers who need to bill based on consumption Not beneficial for customers who expect to be charged based on the consumption behavior
Subscription Based Billing (User Provisioning)
Subscription Model (User Provisioning) Concept: Based on the actual number of users assigned to the SaaS service Pros: Enterprise benefit as billing starts when provisioned to individual users Model is reflective of the enterprises license pattern Cons: SaaS software entitlements need to be managed May not be useful to CSPs as it may result in loss of revenue when licenses are not assigned to enterprise users
Usage Based Billing
Usage Based (PAYG) Model Concept: Based on the actual usage of the cloud service Pros: Pay only for the actual volume of resources consumed Possible to optimize and control cloud spend by governance Cons: Enterprises have difficulty in predicting the cloud expenses A bill shock likely without effective policy control and enforcement Metering the usage and providing granular details is complex for CSPs/Resellers
Subscription Based (Company Provisioning) + Usage
Subscription Based (User Provisioning) + Usage
Cloud Billing : Monetization Models | Subscription Based | Usage Based Billing Models for Cloud Service Providers

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Cloud Billing : Monetization Models | Subscription Based | Usage Based Billing Models for Cloud Service Providers

  • 1. Cloud Billing - Monetization
  • 2. Cloud Monetization Models Cloud Monetization Models Subscription model (Company provisioning) Subscription model (User provisioning) Pay As You Go (Usage based) Combination of the above models
  • 3. Subscription Based Billing (Company Provisioning)
  • 4. Subscription Model (Company Provisioning) Concept: Flat Rate Billing , typically monthly Recurring Revenue. Pros: Suits CSPs moving to the cloud as they understand that SaaS is generally a recurring revenue business Suits cloud consumers instead of upfront investments on licenses + maintenance fees Cons: Inadequate for providers who need to bill based on consumption Not beneficial for customers who expect to be charged based on the consumption behavior
  • 5. Subscription Based Billing (User Provisioning)
  • 6. Subscription Model (User Provisioning) Concept: Based on the actual number of users assigned to the SaaS service Pros: Enterprise benefit as billing starts when provisioned to individual users Model is reflective of the enterprises license pattern Cons: SaaS software entitlements need to be managed May not be useful to CSPs as it may result in loss of revenue when licenses are not assigned to enterprise users
  • 8. Usage Based (PAYG) Model Concept: Based on the actual usage of the cloud service Pros: Pay only for the actual volume of resources consumed Possible to optimize and control cloud spend by governance Cons: Enterprises have difficulty in predicting the cloud expenses A bill shock likely without effective policy control and enforcement Metering the usage and providing granular details is complex for CSPs/Resellers
  • 9. Subscription Based (Company Provisioning) + Usage
  • 10. Subscription Based (User Provisioning) + Usage