This tiered commitment pricing scheme offers

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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 THE FIRST MEANINGFUL YEAR FOR M-COMMERCE M-commerce revenues are small in most markets, but not insignificant 201...
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