Usage-Based Pricing
Usage-based pricing is a business model where customers are charged based on their actual consumption of a product or service, rather than a flat fee or subscription. It is commonly used in cloud computing, SaaS (Software as a Service), and utility services to align costs with value and usage patterns. This model often involves metrics like API calls, data storage, compute hours, or transaction volumes.
Developers should learn usage-based pricing when building or integrating with scalable services, as it enables cost-efficient scaling and pay-as-you-go flexibility, especially for startups or applications with variable demand. It is crucial for designing systems that optimize resource usage and budgeting in cloud environments like AWS, Azure, or Google Cloud, where over-provisioning can lead to unnecessary expenses.