Gartner Research

Keys to Successful Cloud Service Pricing Models: Transparency, Predictability, Simplicity

Published: 01 August 2018

ID: G00360174

Analyst(s): Mike Dorosh , Craig Lowery

Summary

Pricing can make or break a cloud service offering. To help ensure success, technology product managers building cloud-based products and services must balance revenue and profit against client needs and what the market will bear against competition for transparency, predictability and simplicity.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Create Simple Consumption-Based Pricing Models to Ensure Manageability as a Service Provider, and Predictability to the Customer
  • Align Cloud Service Pricing Models Based on the Underlying Resource Cost Structures They Utilize to Ensure Cost Recovery and Value Calibration
  • Base Pricing Models on Value, Not Volume, to Ensure Customer Satisfaction

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