Consumption-based pricing model

October 10, 2020

1 min read

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The common pricing options for Azure services are:

Consumption-based price - You are charged for only what you use. This model is also known as the Pay-As-You-Go rate.
Fixed price - You provision resources and are charged for those instances whether or not they are used.

A common way to estimate cost is by considering workloads on a peak throughput. Under consistently high utilization, consumption-based pricing can be less efficient for estimating baseline costs when compared to the equivalent provisioned pricing. PaaS and serverless technologies can help you understand the economy cutoff point for consumption-based pricing.

Cosumption based model means that customers only pay when they use resources, as such they have no upfront cost associated. Because of that you can create resources at any time and delete them at any time, so you don’t waste any resources. Once resources are deleted, customers stop paying.