Glossary

Usage-based pricing

Usage-based pricing charges customers based on how much they actually use a service.

Usage-based pricing charges customers based on how much they actually use a service. This model is common in industries like cloud computing or software-as-a-service (SaaS), where costs are tied to the amount of resources consumed. It offers flexibility for customers with varying needs.

Example: Amazon Web Services (AWS) charges based on the resources (like data storage) used by customers, allowing businesses to scale their usage up or down as needed.