CompTIA Cloud Essentials+ (CLO-002)Business Principles of Cloud EnvironmentsEasy
A company is evaluating various cloud providers for its new application. One provider offers a licensing model where the cost is based on the actual CPU-hours, GB of storage, and network egress used each month. What type of licensing model is this provider offering?
- APer-seat licensing
- BSubscription licensing
- CPer-device licensing
- DConsumption-based licensing
Show answer & explanationAnswer & explanation
Correct answer: D. Consumption-based licensing
Consumption-based licensing, also known as pay-as-you-go, charges customers based on their actual usage of cloud resources like CPU, storage, and network egress. This aligns directly with the scenario described.
Why the other options are wrong
- A. Per-seat licensing charges based on the number of individual users, which is not described here.
- B. Subscription licensing typically involves a fixed periodic fee for access, regardless of detailed usage metrics.
- C. Per-device licensing charges based on the number of devices using the software or service, which is not applicable to cloud resource usage.
Consumption-based Licensing
A cloud licensing model where customers pay only for the resources they actually use, such as CPU cycles, data transfer, or storage capacity.
- Also known as pay-as-you-go.
- Costs fluctuate based on usage.
- Common in public cloud environments.
Memory trick: Cloud licenses can be like a 'menu' or a 'meter'.