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An organization is migrating its workloads from an on-premises datacenter to Microsoft Azure. In the on-premises datacenter, the organization pays significant upfront costs for physical hardware and maintains fixed capacity regardless of actual demand.
Leadership wants to adopt a cloud billing approach where the company incurs minimal upfront expenses and only pays for the computing, storage, and network resources that are actively utilized.
Which cloud pricing model meets these requirements?
The consumption-based model (often referred to as pay-as-you-go or PAYG) is a cloud billing mechanism where customers are billed exclusively for the resources, compute cycles, storage capacity, and network bandwidth they actually consume over a given billing cycle.
The consumption-based model directly addresses the organization's desire to shift away from fixed on-premises infrastructure expenses toward a variable cost structure that automatically adjusts to real-world resource demand.
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