subscription-based pricing model

A subscription-based pricing model is a payment structure that allows a customer or organization to purchase or subscribe to a vendor's IT services for a specific period of time for a set price. Subscribers typically commit to the services on a monthly or annual basis. 

Download this free guide

Download: Optimize your public cloud cost management strategy

Don't pay more than you have to in public cloud. Review these tools and techniques to keep costs down and stay within budget.

Start Download

• Corporate E-mail Address:

  You forgot to provide an Email Address.

  This email address doesn’t appear to be valid.

  This email address is already registered. Please login.

  You have exceeded the maximum character limit.

  Please provide a Corporate E-mail Address.

• • I agree to TechTarget’s Terms of Use, Privacy Policy, and the transfer of my information to the United States for processing to provide me with relevant information as described in our Privacy Policy.

  Please check the box if you want to proceed.

• • I agree to my information being processed by TechTarget and its Partners to contact me via phone, email, or other means regarding information relevant to my professional interests. I may unsubscribe at any time.

  Please check the box if you want to proceed.

By submitting my Email address I confirm that I have read and accepted the Terms of Use and Declaration of Consent.

Subscription-based pricing is increasingly being used for cloud computing. In a subscription-based model, cloud customers typically pay upfront, prior to receiving access to cloud services. Prices are often based on the subscription's length and a longer subscription often translates to a lower cost. Unlike pay-per-use or consumption-based pricing, however, a subscription-based model can cause customers to overpay for services. 

Cloud customers that use significant resources can benefit from a subscription-based model, however if a customer only uses a small amount of computing resources, a subscription-based pricing model may not be ideal. Some cloud providers offer a subscription-based model that can adjust to reflect actual usage.

Subscription pricing terms are documented in the provider's service-level agreement (SLA).