1. Cloud Billing - Monetization

2. Cloud Monetization Models Subscription model (Company provisioning) Subscription model (User provisioning) Pay As You Go (Usage based) Combination of the above models

3. Subscription Based Billing (Company Provisioning)

4. Subscription Model (Company Provisioning) Concept: – Flat Rate Billing, typically monthly Recurring Revenue. Pros: – Suits CSP’s moving to the cloud as they understand that SaaS is generally a recurring revenue business – Suits cloud consumers instead of upfront investments on licenses + maintenance fees Cons: – Inadequate for providers who need to bill based on consumption – Not beneficial for customers who expect to be charged based on the consumption behavior

5. Subscription Based Billing (User Provisioning)

6. Subscription Model (User Provisioning) Concept: – Based on the actual number of users assigned to the SaaS service Pros: – Enterprise benefit as billing starts when provisioned to individual users – Model is reflective of the enterprise’s license pattern Cons: – SaaS software entitlements need to be managed – May not be useful to CSPs as it may result in loss of revenue when licenses are not assigned to enterprise users

7. Usage Based Billing

8. Usage Based (PAYG) Model Concept : – Based on the actual usage of the cloud service Pros: – Pay only for the actual volume of resources consumed – Possible to optimize and control cloud spend by governance Cons: – Enterprises have difficulty in predicting the cloud expenses – A bill shock likely without effective policy control and enforcement – Metering the usage and providing granular details is complex for CSPs/Resellers

9. Subscription Based (Company) + Usage Based

10. Subscription Based (User Provisioning) + Usage

11. Single Service with Flat Rate + Usage