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How does pricing work for cloud computing?

How do companies charge for cloud computing? Is it by the amount of space you use? Do they have specific "packages" that you purchase? I don't want to drown in operating expenses. I know that it can vary between companies, but in general, how does it work?

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Andrew Mosson
CTO, Focus
Posted on Oct. 8, 2010
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It depends on the model the companies are using - but in general everyone charges based on usage.

Amazon and Rackspace, you are purchasing pure computing resources charge for each computing component individually. They charge for CPUs based on the size and power (the more powerful the CPU, the more money they charge) on an hourly basis, they charge for Storage based on the amount you use on a monthly basis, and they charge for bandwidth based on the amount of data you deliver. There are also a bunch of other resource based charges, but in our experience they don't add up to large amounts.

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