On-Demand Pricing
On-demand pricing is a business model where customers pay only for the resources or services they actually use, typically on a per-unit or time-based basis, rather than committing to fixed upfront costs or subscriptions. It is commonly associated with cloud computing, streaming services, and utility-based offerings, enabling flexible and scalable consumption. This model allows providers to offer granular billing and customers to optimize costs based on real-time needs.
Developers should understand on-demand pricing when working with cloud platforms (e.g., AWS, Azure, Google Cloud) to manage infrastructure costs effectively, as it directly impacts budgeting and resource allocation in scalable applications. It is crucial for designing cost-efficient architectures, such as serverless functions or auto-scaling systems, where usage fluctuates. Knowledge of this concept helps in making informed decisions about service selection, monitoring usage, and avoiding unexpected bills in production environments.