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
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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