Cloud service providers typically offer three options to pay for their service:
- On-demand: You pay for what you use as you use it.
- Reserved: You commit to using a specific amount of a service over a specified period.
- Spot: You use a market auction model to match price with demand.
Each has advantages and disadvantages, but all require an understanding of operational requirements and customer sensitivity to price fluctuations. Economic screening questions are used to gauge customer sensitivity to cloud service cost and importance of the various economic payment models.
