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July 26, 2010

Who Delivers on Cloud Promise of Metered Pricing?

Nicole Hemsoth

Remember the early discussions about how cloud computing billing would be handled in exactly the same way as the big utilities—on a metered basis?

One of the most attractive features of cloud computing as a concept is the ability to pay for only what is used and to have access to the resources on an on-demand basis. While the concepts surrounding this have invoked the metered utility billing system, very few companies have provided this option. For one thing, billing for cloud computing is already a complex task for cloud service providers on a per-core, per-node, or in the case of Amazon, a per instance billing cycle. When you throw in the complexities of metering usage, just as electricity companies do, the process becomes more complicated, especially on a large scale.

Tomorrow morning, Nimsoft, a division of CA Technologies, will be announcing a truly metered service for cloud billing—which marks among one of the first times a fairly major player in the industry is delivering on the promise of metered billing, thus further refining the pay-per-use model. In the opinion of CA’s Nimsoft business unit leader, Gary Read, this will be the future of cloud computing billing, a compelling point that research group IDC supports.

According to the early reports on the possibility of someone leading the way for metered use-based billing, Nimsoft will flip the switch and give this concept life at the end of July.

Full story at Wall Street Journal