CLOUD COMPUTING PRICING CHALLENGES
by Klaus Ehmke The Cloud Computing service model, boarding (SaaS - Software as a Service, PaaS - Platform as a Service, IaaS - Infrastructure as a Service) it is challenging IT companies pricing departments. It is a great sales model that may increase sales of services and recurring service contracts, but requires an experienced pricing department. The Cellular companies implemented this sales model a long time ago. Cell companies deliver a mobile to customers, along with the provision of their services. You are buying your mobile as a service. Likewise, in the Cloud Computing model IT companies are delivering their services along with some hardware, software and infrastructure. This model removes the CAPEX – Capital Expenditure from customer’s hands and shares the gains of a shared infrastructure. It is the perfect setting for everyone. IT companies will increase sales, recurring revenues and increases services margins. Customers on the other hand no longer need to