consumption-based pricing

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consumption-based pricing

Selling software or computing services based on demand (actual traffic, transactions, etc.) rather than a fixed fee per month. Cloud computing became extremely popular due to consumption-based pricing. See cloud computing.
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References in periodicals archive ?
analytical capabilities and pay-for-use consumption pricing.
<p>But since cloud computing is still more in the hype stage than the actual deployment stage, vendors have slowly begun to accept that "a single sales strategy will only get you so far," Bova said.<p>That has resulted in three out of the four largest cloud computing vendors taking major steps in recent months to attract partners to help them market and sell their services.<p>Last month, when Microsoft announced prices for its coming Windows Azure platform-as-a-service (PaaS), the plan included a 5% discount off consumption pricing for Microsoft's 400,000 global sales partners, a half-year discount of 15% to 30% off consumption prices for those signing a minimum six-month contract, and two as yet undetailed subscription plans for partners.
The St Vincent de Paul Society believes that the potential social impact of the scheme can be eased if the Government implements electricity consumption pricing principles which protect low-income, low-volume households and support and reward those who conserve energy.
For example, advanced metering may be a response to public utility commission directives to offer time-based consumption pricing, or as part of new tariff structures developed to drive consumption habits toward less costly production and supply periods, or to take advantage of possible tax credits that are being proposed by Congress in various iterations of energy bills.