Let’s understand what cloud computing and “Pay-As-You-Go” (PAYG) models are. First let’s address PAYG. Simply put, PAYG is a “utility” computing model that allows a user to pay based on machine hours incurred or the amount of resources consumed. This is a very interesting model of utility computing. Users are charged based on their hours of use rather than the entire infrastructure or computing resources present on the premises.

So when it comes to low cost (and mind you, it always is, it’s a perpetual necessity for organizations looking to cut a lot of upfront charges and ongoing IT expenses) for businesses, what you have are billable hours. in the services used they paid for a fleet of real and complete infrastructure of computing resources. Which one wins? Of course, using “utility” or on demand wins hands down. A large capex may not be very beneficial when you know that using cloud services gives you a low/low cost entry point. So you don’t need a complete infrastructure to serve your purpose; You just need an on-demand cloud solution that gives you the greatest advantage of reducing the initial capital expense you’ll incur from traditional on-premises or in-house infrastructure.

Under this model, a dedicated cloud server, including software, storage, and development platforms, can be provisioned for use, and billing can be done according to server storage and power usage. This mechanism is called utility computing. PAYG is also known by other names such as Pay-Per-Usage, Pay-Per-Use, or Pay-As-You-Us.

Discover the riches in the clouds

The next facet of this automated delivery of IT and business services is the phenomenon called cloud computing. In the past, users only had a way to run their applications or programs by using the services of their physical computers and servers present within their organization’s premises. But now, things have dramatically changed for the better because they can do it without setting up any fancy infrastructure to run their apps/software. They can do all their computing tasks, remotely, pay-as-you-go style. Cloud computing allows you to access your information through high-speed Internet connectivity, anywhere, anytime.

For the consumer and business communities, in terms of innovation, mobile access, immense computing power, and on-demand delivery, it is proving very affordable and still productive.

Some of the players in this space are:

• Amazon EC2, Flexiscale, GoGrid, Joyent, AppNexeus RightScale, ElasticServer

Enterprise-class business model, for everyone

A bit more about cloud computing: Cloud computing is an all-inclusive term that describes a wide range of computing services. In fact, as with other critical technology enhancements, many vendors have simply begun using the term “Cloud” for products that fall outside of the basic definition. However, to truly understand how the cloud can bring value to an organization, it is important to find out what it really is and its availability through the ‘as a service’ paradigm. Its virtual and “open” business architecture allows organizations and different interested parties, such as business partners, customers, etc. connect and move to the cloud to do business.

The cloud is a broad collection of services that gives organizations great flexibility in choosing where, when, and how they use the technology of cloud solutions, often referred to as software-as-a-service (SaaS), platform-as-a-service. Service (PaaS) and Infrastructure as a Service (IaaS), and public, private or hybrid.

Now, let’s take a closer look at the pricing of cloud offerings. Cloud pricing is based on a fixed or subscription-based pricing model: basically a usage fee that allows customers/organizations/subscribers to purchase for a fixed payment over a specified period of time, typically monthly or yearly. In the PaaS and IaaS models, however, a combination of billing for storage, server type, CPU usage, etc. offered, for example, pay as you go, monthly, quarterly and yearly. Move to the Cloud; turn it into a new business model for your organization and be more competitive.

Environmentally friendly: Go Green Factor

Being energy efficient is the most important thing. Whether you have an in-house hosted service or your requirement is outsourced to third-party cloud service providers, businesses can still be energy efficient either way. With cloud computing, rest assured that you can save energy costs and contribute to a healthier planet while leaving a smaller carbon footprint.

Moving to the cloud isn’t exactly a selfish act. Creating sustainable solutions will ensure that our planet gets a little love too.