The pay-per-use cost model is one of the main features of Cloud Computing , offered by providers such as Amazon AWS , Microsoft Azure and Google Cloud Platform (GCP) , among others. In this system, you pay only for the resources and time that you actually use, eliminating the need for fixed costs or commitments to idle capacity.
How does Pay Per Use work? #
In the traditional IT model, companies usually purchase physical servers or contract plans with fixed capacity, even if they do not use the full contracted potential. In the pay-per-use model , resource consumption is measured in real time and the billing reflects exactly what was used. This can include:
- Server runtime: You only pay for the hours or minutes that a virtual machine is active;
- Data storage: Charges are proportional to the volume of data stored and the retention time;
- Data transfer: Costs are calculated based on incoming and outgoing traffic;
- Use of additional services: Resources such as data processing, databases, analysis tools or networks are also charged according to consumption.
See the pricing models of providers supported by the Cloud8 Platform #
- Amazon Web Services AWS
- Microsoft Azure
- Google Cloud Platform GCP
- Oracle Cloud Infrastructure OCI
- Huawei Cloud
Practical Example #
Imagine you operate a server only during business hours, from 9am to 6pm, Monday through Friday. Instead of paying a flat fee for the entire month, in a pay-per-use model , you would only be charged for the hours the server is active – and you can schedule servers to turn on/off automatically . This drastically reduces costs, since you don’t have to pay for the periods when the server is down.
Additionally, in the cloud environment, you can adjust capacity according to demand. For example: On peak days, you can activate more servers to meet the increased traffic, and during low hours, you can reduce capacity to save costs.
Advantages of Pay Per Use #
- Flexibility: Adjust resource usage to your needs in real time;
- Economy: Eliminate spending on unused capacity;
- Predictability with scalability: Although costs vary, you only pay for what you consume, making expenses more directly linked to actual usage;
- Low-cost experimentation: Test new solutions or scales without the need for large upfront investments.
Pay Attention to Total Costs #
It’s important to note that the cost of a pay-per-use model goes beyond server processing time. Other factors that can impact your budget include:
- Data transfer: Charges for outbound traffic (egress) to the Internet can be significant in applications with high download volumes;
- Storage: Data stored for long periods or with high redundancy can increase costs;
- Additional services: Features such as load balancing, monitoring, and security are also charged separately.
This model is one of the main attractions of Cloud Computing , providing a highly scalable and cost-efficient environment. However, to make the most of this flexibility and savings, it is essential to monitor consumption, plan the necessary resources well and optimize the architecture to avoid unnecessary expenses.