concept

Pay Per Use

Pay Per Use is a pricing model where users are charged based on their actual consumption of a service or resource, rather than a flat fee or subscription. It is commonly used in cloud computing, utilities, and software-as-a-service (SaaS) to align costs with usage, offering flexibility and scalability. This model helps businesses optimize expenses by paying only for what they use, often measured in units like compute hours, data storage, or API calls.

Also known as: Usage-Based Pricing, Pay-As-You-Go, Consumption-Based Pricing, Metered Billing, PPU
🧊Why learn Pay Per Use?

Developers should learn about Pay Per Use to design cost-effective applications, especially in cloud environments where it enables scalable architectures without upfront investments. It is crucial for optimizing cloud spending, budgeting for variable workloads, and implementing usage-based billing in SaaS products. Understanding this concept helps in selecting appropriate cloud services and avoiding unexpected costs in production systems.

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