SubscriptionFlow—The Best Subscription Billing Solution for Cloud Computing Services Providers

At present, the trend of using on-premise software has become old. In the last decade, the world of information technology (IT) shifted from installed software to cloud-based services. It is easy to access online cloud-based platforms because they are accessible from anywhere, the data storage capacity is satisfactory, the speed of data processing is fast enough, and they are quite secure. These are all the features that have bestowed cloud-based service providers with success.

In this blog, you are going to find details of:

  • Cloud computing
  • Service models of cloud computing
  • Pay per use billing model for cloud computing services
  • Subscription billing software for cloud computing services

Also Read: How Can Your Cloud-Based Subscription Billing Drive More Growth With Improved Revenue Operations?

What is Cloud Computing and How It Revolutionized Modern Businesses?

There was a time when the storage space of a few MBs or even GBs was considered to be sufficient. The modes of storing data were limited and they were not optimally secure. People like Steve Jobs bragged about the storage capacity of a few GBs of their products. However, the need for data storage capacities increased. Not just tech giants but many other companies need to store trillions of data.

Every day quintillion bytes of data are processed through different channels on the internet. This data is stored on shared online resources that can be accessed if one is having internet connectivity. This network of servers where the data is stored and processed constitutes the cloud.

Service Models of Cloud Computing

Now that it is clear that the data on the internet is stored on data servers of the cloud, what is the way of delivering data storage and other services to those who need it? That’s where the cloud computing service models come. These service models include:

  • Software as a service (SAAS)
  • Product as a service (PAAS)
  • Infrastructure as a service (IAAS)

The difference between cloud computing IAAS, PAAS and SAAS is as follows:

Software as a Service (SAAS)

SAAS is one of the cloud computing delivery models. If you use SAAS services, then you will not need to install the software rather you can access it via the internet. Installed software can be used by only those people who use the specific hardware on which software is being installed. Nonetheless, SAAS can be accessed by multiple users as it is online and its access depends on the internet connectivity.

Product as a Service (PAAS)

PAAS is another delivery model of cloud computing. It is preferred by developers. PAAS providers not only host the software but also their hardware.

Infrastructure as a Service (IAAS)

IAAS is also a money-saving cloud computing services model that offers storage and networking resources. It reduces the effort of maintenance of the software that users otherwise need to put in while using the on-premise software.

Also Read: Cloud Billing Market – Implications, Trends & Applications

Billing Model for Cloud Computing Services

Now that the idea of cloud computing services is clear, you will be wondering about the billing model for such services. So, cloud computing services are not provided with the one-time pricing model. The reason is that the user needs cloud computing services recurrently. Although companies offer free trials and freemium, the user is asked to subscribe to use cloud computing services in the future. Subscription billing is a profitable business model for cloud computing services providers and an affordable one for subscribers—a win-win scenario. The users are charged for subscriptions as per the pay as you go billing model.

Pay as you Go Billing Model for Cloud Computing Services

When the customer is to be charged as per his consumption of services, pay as you go serves the best billing model because of the following reasons:

  • Recurrently used services are charged recurrently
  • The customer pays the fee in the advance
  • The customer has the assurance that he is only paying for what he is using
  • Customer satisfaction increases
  • The customer is liable to pay at the end of each billing cycle
  • Consistency in the flow of revenue stream
  • Accuracy in the revenue predictions
  • Automated and accurate billing at the end of the billing cycle

All these factors show that pay as you go is the best billing model for cloud computing services providers.

Other Pricing Models for Cloud Computing Services Providers

Today, the competition in the market is high. Companies have to look for ways by which they can facilitate their customers to the maximum level. They need more subscribers and then turn these subscribers into loyal customers. Customer retention has become key to the success of cloud computing service providers.

Though pay as you go is the best billing model for cloud computing services providers, these days, they also offer their customers the option of other pricing models. One can find various cloud-based businesses offering fixed prices or hybrid pricing as per the ease of their customer. However, to implement such diverse pricing models and monitor the performance of pricing plans, efficient billing software is needed.

Also Read: Choosing Subscription Pricing Models to Maximize Conversion and Boost Sales

SubscriptionFlow—A Subscription Billing Software for Cloud Computing Services Providers

Subscriptions-based businesses opt for different pricing models i.e. one-time pricing, pay per use pricing, pay as you go, hybrid pricing, and more. It is also a fact that these days, opting for one pricing model and monitoring the revenue-related KPIs is not the only thing. Businesses implement various pricing models, and the sole target is to onboard subscribers and satisfy them with the pricing that they like so that the length of the customer life cycle can be increased.

SubscriptionFlow has a range of clients who implement various pricing plans through this robust subscription handling platform. Those offering cloud-based services can effectively implement and manage pay as you go billing model through SubscriptionFlow.

If you offer subscriptions for your cloud-based services, then SubscriptionFlow is for you. Here you can manage subscribers, process recurring payments, monitor KPIs, handle churn, do smart dunning, and a lot more.

If you want to know if pay as you go billing model, is  for your business or not, then you can consult one of the previously written blogs:

Also Read: What is Pay as You Go Billing Model for Businesses? An In-depth Look at Consumption Based Pricing


Whether you are a startup or an established cloud computing services provider, SubscriptionFlow can be your best choice for recurring billing and payment processing. You can sell cloud computing services by opting for SaaS, PaaS or IaaS, depending on your business. But to manage billing and pricing for these services models, SubscriptionFlow is the reliable option. Our team waits for your call. Schedule a demo today!