Cloud computing and APIs are driving new approaches to developing and deploying innovative banking and payments platforms. For both start-ups and industry incumbents, this is becoming the preferred IT approach.
With the growth in use of cloud-based platforms, the importance of cloud management grows in managing resources and protecting security in this rapidly expanding IT environment. According to an article in AiThority, cloud management platform provider Centilytics is introducing a new service pricing model to eliminate pricing conflicts typical in the market today:
Cloud Management Platforms (CMP) can safeguard the data and prevent cost leakages from the accounts.
Typically, a CMP charges a percentage fee on the cloud consumption; In other words, that’s a part of savings.
On a percentage pricing model, the CMP’s revenue becomes directly proportional to cloud spending. It means they’ll earn more when the cloud bill increases.
This conflict has been generalized and never been visible because users have gotten used to it.
When Centilytics (an Intelligent Cloud Management), noticed this conflict, it went ahead. It introduced a flat fee model for its customers.
In the rapidly growing cloud/API service marketplace, it is important to watch for business model innovations as well as technology innovations. Pricing is one such dimension where the payments industry has seen flat pricing of services take off, first with smaller and simpler accounts, and then grow to larger user segments than expected.
Overview by Ken Paterson, VP, Special Projects and Director, Customer Interaction at Mercator Advisory Group