CompTIA Cloud Essentials+ (CLO-002)Business Principles of Cloud EnvironmentsEasy

A company is comparing cloud providers. Provider A offers a licensing model where they charge per virtual CPU hour and per gigabyte of RAM consumed. Provider B offers a model where they charge a flat monthly fee for a pre-defined package of resources, regardless of actual usage within that package. Which type of licensing model does Provider A primarily represent?

  1. AConsumption-based licensing
  2. BPer-device licensing
  3. CSubscription licensing
  4. DPer-user licensing
Show answer & explanation

Correct answer: A. Consumption-based licensing

Provider A's model, charging per virtual CPU hour and per gigabyte of RAM consumed, is a classic example of consumption-based licensing. This model bills customers based on their actual usage of resources, which is a hallmark of cloud computing's pay-as-you-go nature.

Why the other options are wrong

  • B. Per-device licensing charges based on the number of devices accessing the service.
  • C. Subscription licensing typically involves a fixed recurring fee for access to a service or set of resources.
  • D. Per-user licensing charges based on the number of individual users.

Consumption-based Licensing

A licensing model where software or service costs are directly tied to the actual usage of resources, such as CPU hours, data transfer, storage, or API calls, embodying the 'pay-as-you-go' principle of cloud computing.

  • Pay-as-you-go model
  • Charges based on actual resource usage
  • Common in cloud computing for IaaS and PaaS
  • Costs fluctuate with demand

Memory trick: License: Limit, Live, or Lease.

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