A mid-sized enterprise is looking to move their content management system to the cloud. The majority of their users access the system infrequently, but during quarterly financial close cycles, the system usage spikes dramatically. The CTO wants to ensure that billing is aligned with actual usage rather than a flat monthly fee to optimize costs. Which subscription model should be recommended to the CTO?
The correct answer is a 'pay-as-you-go' subscription model because it allows the company to pay only for the resources they consume during each billing cycle. This model is appropriate for the enterprise since it experiences sporadic spikes in usage which don't justify a constant expense rate. A flat-rate subscription would not afford the desired cost-saving benefits during periods of low usage. A per-user license, while relevant for software that charges based on user access, may not offer the level of granularity required for cost savings in the case of infrequently accessed systems. A tiered model could introduce unnecessary complexity by having preset usage tiers, which may not align neatly with the enterprise's variable requirements.
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What exactly is a pay-as-you-go subscription model?
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How do tiered subscription models work, and why might they not be suitable for this enterprise?