Unraveling the Conundrum of Cloud Pricing
- ID: 2457067
- February 2013
- 6 Pages
- Saugatuck Technology
In this Strategic Perspective, we discuss a number of issues that make up the Cloud pricing conundrum with the intention of unraveling some of its complexity. We consider underlying costs, the elements of Cloud pricing, the value metric, monetization and, finally, offer guidance in the form of four best practices. Along the way we note that partnering is one essential tactic for reducing costs, introducing highly professional services and, through integration or embedding, innovative differentiation. We also observe that highly successful Cloud ISVs direct R&D spending toward cost reductions in addition to solution innovation.