Let’s understand what cloud computing and “Pay-As-You-Go” (PAYG) models are. Let’s tackle PAYG first. In a nutshell, PAYG is a computing “utility” model that allows a user to pay based on machine hours incurred or the amount of resources consumed. This is a very interesting utility computing model. Users are charged based on their hours of use rather than the entire infrastructure or computing resources present on the premises.

So when it comes to low cost – and mind you, it always is – it’s a perpetual necessity for organizations looking to cut a lot of upfront charges and ongoing IT expenses. For businesses, what you have is billable hours in services used paid for by a fleet of real infrastructure and complete computing resources. Which one wins? Of course, using “utility” or on-demand wins hands down. A large capex may not be very beneficial when you know that using cloud services gives you a low/low cost entry point. So you don’t need a whole infrastructure to serve your purpose; you just need an on-demand cloud solution that gives you the biggest advantage of reducing the upfront capital expense you’ll incur from traditional on-premises or in-house infrastructure.

Under this model, a dedicated cloud server, including software, storage, and development platforms, can be provisioned for use and billing can be done according to server storage and power usage. This mechanism is called utility computing. PAYG is also known by other names such as Pay-Per-Usage, Pay-Per-Use, or Pay-As-You-Us.

Discover the riches in the clouds

The next facet of this automated delivery of IT and business services is the phenomenon called cloud computing. In the past, users only had one way to run their applications or programs by using the services of their physical computers and servers present within the premises of their organization. But now, things have changed dramatically for the better because they can do it without setting up any fancy infrastructure to run their applications/software. They can perform all their computing tasks, remotely, pay-as-you-go style. Cloud computing allows you to access your information through high-speed Internet connectivity, anywhere, anytime.

For the consumer and business communities, in terms of innovation, mobile access, immense computing power, and on-demand delivery, it is proving to be very affordable and still productive.

Some of the players in this space are:
Amazon EC2, Flexiscale, GoGrid, Joyent, AppNexeus RightScale, ElasticServer

Enterprise-class business model, for everyone

A little more about cloud computing: Cloud computing is an all-inclusive term that describes a wide range of computing services. In fact, as with other critical improvements in technology, many vendors have simply started using the term “Cloud” for products that fall outside the basic definition. However, to really understand how the cloud can add value to an organization, it is important to find out what it really is and its availability through the ‘as a service’ paradigm. Its virtual and “open” enterprise architecture enables organizations and different stakeholders, such as business partners, customers, etc. connect and move to the cloud to do business.

The cloud is a broad collection of services that gives organizations great flexibility in choosing where, when, and how they use cloud solutions technology, often referred to as software as a service (SaaS), platform as a service. Service (PaaS) and Infrastructure as a Service (IaaS), and public, private or hybrid.

Now, let’s take a closer look at the prices of cloud offerings. Cloud pricing is based on a fixed or subscription-based pricing model: basically a usage fee that allows customers/organizations/subscribers to purchase for a fixed payment over a specified period of time, typically monthly or annually. In PaaS and IaaS models, however, a combination of storage billing, server type, CPU usage, etc. it offers, for example, payment for use, monthly, quarterly and annual. Move to Cloud; turn it into a new business model for your organization and be more competitive.

Environmentally friendly: Go Green Factor

Being energy efficient is the most important thing. Whether you have a service hosted in-house or your requirement is outsourced to third-party cloud service providers, businesses can still be energy efficient either way. With cloud computing, rest assured you can save energy costs and contribute to a healthier planet by leaving a smaller carbon footprint.

Moving to the cloud isn’t exactly a selfish act. Creating sustainable solutions will ensure our planet gets some love too.

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