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How do companies involved in cloud computing make money?

There are four major cloud computing pricing models that exist in the market today:

• Freemium Model: It brings more and more registered customers in. Out of which, few customers will assuredly open their wallets, such as DropBox, LinkedIn, EverNote.
• Consumption Model: This is based on pay-per-use billing model, wherein benefactors help to accomplish dynamic business demands. Also, this model enables them to upsell existing and new services.
• Tiered Pricing: It is one of the most popular enterprise SaaS models, wherein pricing is based on the number of seats, servers, data volumes, and so on. This model helps in establishing long-lasting bonding with end-users.
• Perpetual License Model: This model allows Cloud service providers to lock in longer-term contracts.