We know that IT is not cheap, and paying upfront for services you don’t need is just no longer an option. Thus, a cloud computing solution that only charges you based on the applications or resources you use sounds like a better choice.
Moreover, with the rise in cloud computing services, the pay-per-use model is a frequently used option. Hence, let’s delve a little deeper into cloud computing and what it has to offer.
Cloud computing is taking over traditional, on-premise computing. Furthermore, it has changed how individuals manage their computing habits and what businesses allocate to their IT expenditure budgets.
Moreover, cloud computing has enabled the quick and easy delivery of various applications and services via the internet at competitive prices.
To better understand the cloud computing market and available cost models, we have synthesized the most relevant information to provide you with current, expert knowledge on the subject.
Additionally, these insights will assist you in identifying which model offers applications on a pay-per-use basis. Therefore, let’s look at cloud computing, the types of clouds available, and service models that suit your price range.
What Is Cloud Computing?
Cloud computing is computer system technologies and resources accessible through the internet. IT solutions involve various services and applications, including software, servers, storage, databases, and networks.
Thus, cloud computing is revolutionary as we can now rent infrastructure and IT services remotely from various service providers.
What Types of Cloud Computing Are There?
All cloud computing types provide digital processing power with various IT system capabilities. See what sets them apart:
Public Clouds
Public clouds provide all the hardware, software, and supporting infrastructure and services to the general public through the internet. In addition, the third-party or cloud service provider owns and operates the public cloud.
Thus, as the user, you can access and manage the services and resources through your account via a web browser. It is the best cloud type for collaborative projects and software development.
Positives: It is known for the availability of massive space and ease of maximizing scalability. Moreover, you can leverage off the hosts’ security standards. Public clouds are also versatile with a ‘pay as you go’ structure.
Negatives: The host or service provider has complete control of the infrastructure and operating system. Therefore, you are at the mercy of any changes they make to the platform or risk security breaches if anything happens to the company.
Examples: Google, Microsoft, and Amazon.
Private Clouds
Private clouds are used by a single company and protected by a firewall. Moreover, the service and infrastructure are managed and maintained on a private network.
Private clouds are located on-site or hosted remotely by a service provider. Additionally, like a public cloud, you can access, use, and store data virtually. However, the difference is no one else can access it.
Thus, it is the best cloud type for extremely secure regulatory requirements and values control over data and assets.
Positives: You get strict security and control. Furthermore, you will not be disrupted by downtime and system changes. You also benefit from the technical support and disaster recovery from the vendor.
Negatives: It is expensive with costs incurred for hardware and software. Moreover, any expansions are costly as only hardware and storage capacity can be expanded. Thus, it lacks versatility, and scalability may be challenging.
Examples: Dell, Oracle, and IBM.
Hybrid Clouds
This cloud type is a mixture of public and private cloud platforms. Furthermore, it was created for the seamless integration of resources and applications between the platforms.
Thus, you’ll enjoy the benefits of both platforms’ technologies. More advanced hybrid clouds are called Multi-clouds. Therefore, it is the best cloud type for large data organizations that require secure data privacy regulations.
Positives: It combines and provides the scalability power of the public cloud with the control and security of the private cloud. Therefore, it is cost-effective, flexible with multiple deployment options, optimized infrastructure, secure, and compliant.
Negatives: The interaction between the platforms can impact performance and security. Additionally, all service providers do not have experience managing a hybrid model.
Community Clouds
This cloud type provides a collaborative platform for multiple users who use the same applications. It is also an unpopular cloud type.
However, large community organizations like government agencies, healthcare facilities, and financial services use this cloud. Thus, it is the best cloud type for collaborations with multiple users who use the same applications.
Positives: Shared scalability, secure security regulations and industry compliance, and easy collaboration for interactive performance with flexible system controls.
Negatives: Shared storage may cause data security issues. In addition, the shared storage and bandwidth can impact performance and prioritization.
You now have a general sense of the common types of cloud computing available. Let’s explore which cloud computing models are out there.
What Cloud Computing (Service) Models Are There?
Cloud computing models, or cloud service models, are a part of the SPI framework. SPI stands for Software, Platform, and Infrastructure, and it is the most popular service model of cloud computing today. Therefore, the 3 main types of cloud computing models: Paas, SaaS, and IaaS.
What Is SaaS, and What Does the Model Offer?
SaaS stands for Software-as-a-Service. Thus, it is a service that offers remote on-demand software applications from a host cloud provider via the internet.
Moreover, the cloud service provider hosts and manages the embedded infrastructure, platform maintenance, and software application resources.
They are known for the delivery of applications-as-a-service. Further, SaaS models can be configured for public cloud or private cloud access.
It is also easily accessible via a web browser or mobile application with an internet connection and credentials to log into the account.
Therefore, most people use saaS daily. Examples of SaaS models are Email, Google Docs, Dropbox, Office 365, and Salesforce.
Pros
- Cost-saving
- Easily accessible
- Suitable for individuals, small businesses, and large organizations
- No downloads or installations required
- No on-premise IT infrastructure and maintenance required
Cons
- Data security
- Limited access to functionality
- Limited customization options
- No control
What Is PaaS, and What Does the Model Offer?
PaaS stands for Platform-as-a-Service. Therefore, it is a service that offers a ready-to-use computing platform for developing, delivering, testing, and managing software.
Moreover, the cloud service provider rents out IT tools and resources. Paas also offers developers operating systems, middleware, development tools, and databases to build and code applications.
The service provider sets up and manages the infrastructure, storage, database, and network for the development process.
Thus, PaaS is best for website and mobile application development as it offers everything a developer will require to build an application. PaaS models are Google App Engine, Windows Azure, and OpenShift.
Pros
- Cost-effective
- Delivered on all clouds types
- Quick and easy build/develop
- Built for innovation and collaboration
- Supports various programming languages
- ADA compliant
Cons
- Must be software development level
- Limited operational control
- Data security issues
- Lacks general-purpose solutions
What Is IaaS, and What Does the Model Offer?
IaaS stands for Infrastructure-as-a-Service. Thus, it is a service that offers all the essential computing resources for rent from a cloud service provider.
Additionally, it can virtually replace on-premise computing infrastructure. These include servers, operating systems, storage, data center space, networks, and virtual machines.
The best option is to create an application from scratch with complete control of all the necessary technical elements required.
However, for this, you will need reasonable technical skills to develop and manage the services at this level successfully. Thus, IaaS models are Google Compute Engine, Amazon Web Services, and DigitalOcean.
Pros
- Complete infrastructure control
- Automation
- Enables easy innovation
- Most scalable
- Most secure
- Minimal time for deployment of new applications or services
- Lowered maintenance costs
- No hardware or in-house software costs
Cons
- Expensive
- Storage of data is a security risk
- Maintain virtual machine
- Requires IT skills
Each cloud service model offers different uses with particular needs for a specific user. Moreover, SaaS provides software applications without having to manage or maintain them.
PaaS also offers platforms to code and develop applications whereas IaaS offers computing resources to host and operate services.
They differ in the provision levels of control, security, and scalability. However, the only fundamental similarity between the cloud computing service models is the cloud deployment.
Consequently, with the basics of cloud computing, it will be easier for you to determine which services match your IT needs and price.
What Cloud Model Delivers All Services Including the Application?
The Software-as-a-Service (SaaS) model delivers all the services you require, including the application.
The cloud service provider delivers and manages all the backend infrastructure, operating and management systems, storage, and software necessary to run virtually and efficiently.
What Cost Models Are There for Cloud Computing Services?
Cloud computing model prices are broadly categorized based on usage. Hence, this model can be priced by subscription, pay-per-use/consumption-based, or a mixture of the two creating a hybrid price model.
What Is Subscription-Based?
Many SaaS models are subscription-based. Thus, subscription-based is where you pay an upfront monthly (or annual) fee to gain access to products/services.
Therefore, as a subscriber, you’ll avoid paying licensing, maintenance, and support costs, as the cloud service provider will cover these.
What Is a Pay-Per-Use Basis?
Pay-per-use (PPU) or Pay-as-you-go (PAYG) is a price model where you pay partially or fully for the services you use.
Moreover, you will pay a fixed price based on committed usage. Therefore, it means that the cloud host will only charge you for the services rendered based on what you consume.
Vendors will charge you for the time used and the number of resources or services you select. Thus, you will pay for what you use and how long you use it.
Moreover, the price is calculated on the metrics of the products or services. Metrics depend on the service providers’ predetermined costs.
Which Cloud Computing Model Offers Applications on a Pay-Per-Use Basis?
The Software-as-a-Service (SaaS) model offers applications on a pay-per-use basis. Thus, it only delivers software applications as a cloud service. It also makes applications easily accessible from different devices.
PaaS and IaaS offer other services on a pay-per-usage model. PaaS providers offer the pay-per-use option to optimize the developers’ flexibility to enable the switching and changing of various platforms, servers, tools, and databases at the cost of shared use.
IaaS providers offer the pay-per-use option for specific IT resources and data sharing requirements charged for time or use of virtual machine space.
Why choose the pay-per-use basis for applications?
You reap greater rewards for applications on a pay-per-use basis as you’ll have access to fully licensed and updated versions of software applications at a small fee. You avoid the large expenditure on acquisition.
What Cloud Services May Be Free or Offered on a Pay-Per-Usage Model?
The most popular and top used cloud service, Software-as-a-Service (SaaS), offers fee or pay-as-you-go services.
Moreover, it is a standard service model that provides storage, applications, and other resources free of charge or a pay-per-usage for additional services.
With SaaS deployed on public clouds, the software is available on the internet for the general public.
Which Cloud Computing Service Model Is Best for You?
The service model you choose depends on you and your cloud computing needs. Therefore, understanding what type of user you are, the different service models available, and the offered services will assist your selection process.
What Type of Cloud Computing User Are You?
The computing model that you select should match your level of computing experience and IT requirements as a user. Thus, which end-users are you?
- A general end-user or small business owner looking for basic application functionality? A SaaS model is the best option for you.
- A software or web developer looking for a coding environment with IT tools? A PaaS model is the best option for you.
- An IT administrator or Network engineer looking for virtual machines to explore? An IaaS model is the best option for you.
Conclusion
Cloud computing solutions offer flexible resources, quick, innovative tools, and economies of scale through remote service operators.
You are charged for the time you used the resources. You only pay for the cloud services you use. This payment structure lowers operating and infrastructure costs and enables scale through change or development.
Any cloud service model, be it SaaS, PaaS, or IaaS individually or combined, will assist with cost-effective digital transformation. The SaaS model is the way to go for a cloud computing model that offers applications on a pay-per-use basis.
