What Do Metered Consumption Payment Plans Look Like?
Instead of forking down a lump sum every year, colleges and universities can pay a much smaller (and fairer) bill each month.
Let’s look at data storage as an example. If you use capacity planning to forecast storage needs, you might purchase 100 terabytes of storage for the year but end up using only 50TB. With metered billing, you would have to pay only for the little bit that you use each month.
But you can still use a capacity planning model for certain services if you want to. After all, there are certain mission-critical resources you might feel more comfortable reserving in advance. And you can often receive discounts for taking this approach.
For example, if you know there is a minimal amount of software resources that you will definitely need for the year, you can receive a discount for committing to a yearlong purchase. This is called a reserved instance. These are generally one-year and three-year options that offer up to 70 percent discounts for customers.
MORE ON EDTECH: Learn how Software Asset Management can help higher ed save money.
How Metered Consumption Can Improve Remote Learning
As remote learning grows, we also have to consider our end users. Using a cloud-based e-learning tool offers potential metered consumption on a user level and brings a host of other benefits.
For staff, it provides pre-made templates, collaboration platforms and multimedia features. For students, it provides better performance, because most cloud-based e-learning platforms are built on a distributed cloud system. This distributed model provides more points of presence in many regions, thus allowing students to access content more easily.
With the rise of online learning — and the decline in budgets — it’s time to reap the financial benefits of metered consumption.
This article is part of EdTech: Focus on Higher Education’s UniversITy blog series.