Pay-as-you-go is a pricing model in which customers pay only for the resources they consume, such
as compute, storage, network, or software services4. Pay-as-you-go helps transform from a typical
capital expenditure model to an operating expenditure model by eliminating the upfront costs of
purchasing and maintaining physical infrastructure and software licenses5. Pay-as-you-go also
provides flexibility and scalability to adjust the resource consumption according to the changing
business needs6.
Reference:
Consumption and fixed cost models, Microsoft Azure Well-Architected Framework
What is Cloud Elasticity in Cloud Computing?, The Iron.io Blog
CompTIA Cloud Essentials CLO-002 Certification Study Guide, Chapter 2: Business Principles of Cloud
Environments, page 51
