Unformatted text preview: ons for
one- or three-year terms. This “tiered commitment” pricing
scheme offers discounts of 30–50% ■ spot pricing (November), which allows customers to bid
for unused on-demand or reserved compute resources
and keep using them until Amazon needs them back or
the customer is outbid. Customers pay the spot price
rather than the maximum bid price that they specify.
This scheme is relevant to workloads that can deal with
lower resources, such as batch image conversion, video
rendering, and financial analysis.
Other pricing schemes include: ■ a configuration approach – the customer starts with a
basic configuration for an entry fee and then pays extra to
add various services ■ buy-back, which enables public cloud providers to buy
back some of the capacity of a virtual private cloud if
it is unused – this approach is similar to the smartgrid/
metering work in the utilities space ■ vendor load balancing, in which the public cloud provider
adds capacity based on resources (for example, if the
CPU is more than 80% busy for five minutes, the vendor
adds 30% more capacity) or virtual machines (the
vendor adds virtual machines to run any extra workload).
As a result, while pricing is transparent, costbenchmarking exercises quickly become challenging (but
not impossible). ■ an upfront or joining fee to build and configure the system,
and then recurring yearly, quarterly, or monthly payments ■ a schedule-based approach, whereby enterprises commit
to a fixed number of units based on expected requirements S TRAIGHTTALK I T 15 CHRISTINE BARDWELL M -commerce has a pivotal role to play
in retail. Those businesses that do not
already have an m-commerce strategy
in place must act now. Even if their strategy is
to not implement m-commerce, this must be
a thoroughly researched, conscious decision.
Successful mobile commerce operations will
link with the consumer in-store as well as
online, offering a seamless and unified crosschannel shopping experience. 16 S TRAIGHTTALK I T 2010 WILL BE
M-COMMERCE M-commerce revenues are small in
most markets, but not insignificant
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This document was uploaded on 12/31/2013.
- Fall '13