Monetization for IaaS
Monetization for Cloud Service Providers or monetization for IaaS providers involves measuring the active usage of various cloud resources and then charging the consumers of those cloud resources based on their usage. In most cases, the usage of a cloud resource is based on the number of hours the service or the resource is active, but in some cases it is also based on the load handled by a computing resource and the amount of data that was streamed etc.
The cloud based resources are charged using pay-as-you-go pricing. One of the ways to charge the pay-as-you-go rates is to use hourly billing. This way of charging based on the number of hours the service is active is an important component of the monetization for a cloud service. The mechanism to measure the active usage could vary for each cloud resource.
For example, a VM may be charged based on the number of hours it has been active. It can also be charged for the number of hours that it was inactive in the month but at a less rate than the rate charged when it was active. A service such as a VPC (which represents a private network) may be charged based on the amount of data that was streamed by this network in gigabytes per month.
How EarnBill implements monetization for the IaaS platform?
EarnBill provides the ability to measure and rate the consumption of cloud based resources in two ways which are quite crucial for iaas billing:
Hourly Traffic:
Hourly billing for cloud based resources is a win-win pricing strategy for both consumers of the cloud based service as well as the providers. It entails that service or a cloud based resource such as a VM or a storage is charged only for the number of hours that it was in use. It is not rated for hours that it was in-active. In some cases, the resource is charged at a lower rate when not in use.
Without any doubt, this pricing and charging strategy is going to be more attractive to customers than the flat rate pricing involving monthly subscription.
This hourly billing strategy is also termed as PAYG or Pay As You Go pricing strategy. EarnBill’s monetization for IaaS providers relies on an hourly billing software module which is really an extension of its billing mediation module.
EarnBill’s hourly billing software module tracks the hours spent by each cloud resource in the background and applies to it the hourly rates defined in the Product Catalogue. The bill is produced with a summary of each service as well as the detailed usage records of sessions when the service or the resource were in use. This provides complete transparency to the user thereby accurately validating with their own records.
Rating the Streaming of Data or Traffic
EarnBill integrates with a continuous feed mechanism through which it can accumulate network traffic transmitted over various network resources. EarnBill provides integration points over API and through SFTP mechanisms through which a streaming of traffic can be rated and charged.
Sometimes, the network resources on cloud are charged based on the volume of data or traffic that is transmitted over the network.
A cloud platform measures such network traffic and records the traffic on each network resource being charged. EarnBill provides an easy way to integrate with the cloud platform to plug-in its billing mediation module and rate and charge such usage records.
EarnBill also supports features such as the Product Catalogue, Subscription Management, Recurring Billing, Prorated Billing, Custom Invoice Designs, Automated Payment Collection, Dunning Management and more, that directly help with the monetization for IaaS providers.
Related Readings:
For more detailed understanding of IaaS monetization or IaaS Billing Solution, please go through following links: