Economical background of cloud is more useful for developers in the following ways:
Economic Planning for OrganizationsPrior to investing the money for Cloud computing & deploying cloud applications clients should essentially think requirements, strategically plan them for business needs.
- Pay as you go model offered by cloud providers.
- Scalable and Simple.
Cloud Computing Allows:
- Reduces the capital costs of infrastructure.
- Removes the maintenance cost.
- Removes the administrative cost.
In the case of start-ups, there is no extra budget for the infrastructure and its maintenance. So cloud can minimizes expenses of any small organization in terms of economy. It leads to the developers can only focus on the development logic and not on the maintenance of the infrastructure.
There are three different Pricing Strategies which are introduced by the Cloud Computing: Tiered Pricing, Per-unit Pricing, and Subscription based Pricing. These are explained as following below.
- Tired Pricing : Cloud Services are offered in the different tiers . Every level offers fix service agreements at specific cost. Amazon EC2 utilizes this sort of pricing.
- Per-unit Pricing : The model is based upon the unit specific service concept. Data transfer and memory allocation includes in this model for specific units. GoGrid uses this kind of pricing in terms of RAM/hour.
- Subscription Based Pricing : In this model users are paying periodic subscription fee for the usage of software.
So these models gives more flexible solutions about cloud economy.