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Discussion

Match each pricing model with what it offers.
List I
A. On demand
B. Committed use
C. Spot capacity
D. Free tier
List II
1. spare capacity cheaply but reclaimable
2. full flexibility at the highest unit price
3. a small allowance at no charge
4. a discount in return for a term commitment

  • A.A-2, B-4, C-3, D-1
  • B.A-3, B-1, C-4, D-2
  • C.A-2, B-4, C-1, D-3
  • D.A-4, B-2, C-1, D-3

Answer: C

Correct answer: A-2, B-4, C-1, D-3

The four models trade flexibility against price. On demand costs most per unit and commits to nothing. Committed use exchanges a one or three year term for a substantial discount. Spot capacity sells the provider’s spare fleet cheaply on the understanding that it may be taken back. And the free tier is a small allowance intended for evaluation and learning rather than production.

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