Cloud computing provides a pay-as-you-go or consumption-based pricing model. Rather than paying upfront for a pre-defined amount of computing resources or hardware, you can rent hardware and pay for the resources that you actually use.
This consumption-based model brings with it many benefits, including:
No upfront costs.
No need to purchase and manage costly infrastructure that you may not use to its fullest.
The ability to pay for additional resources only when they are needed.
The ability to stop paying for resources that are no longer needed.
Paper bill and a cloud representing cost effectiveness.
This also allows for better cost prediction. Prices for individual resources and services are provided so you can predict how much you will spend in a given billing period based on your expected usage. You can also perform analysis based on future growth using historical usage data tracked by your cloud provider.