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Microsoft files patent for performance-based pricing for cloud service -report

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(Credit: Reuters) Microsoft CEO Steve Ballmer speaks at the launch event of Windows 8 operating system in New York.Microsoft
January 17
6:01 PM 2014

Microsoft wants to provide a new and unique pricing system to its cloud consumers. Just like in Priceline.com, the software giant wants to set the rate of its cloud service based on the performance level the client is willing to pay for, according to VentureBeat.

Last year, two workers from Microsoft Research filed for a patent for "performance-based pricing for cloud computing," according to InformationWeek. Under this system, an enterprise client could bid for a set of performance requirements in a cloud service. The service manager could either reject or accept a client's bid. The basis of performance level might include a deadline for a task, or the number of requests a client can make to the service, the report explained.

If Microsoft can incorporate this pricing system for its Windows Azure cloud service, companies that are willing to pay a higher price for better service could line up for it. However, the said model could also fall short for the customers, the report said.

Microsoft researchers Ishai Menache and Navendu Jain explained: "[T]here is no certainty as to when a job will complete. There is also no certainty as to what the total execution cost will be, given dynamic market spot price."

The tech giant has yet to confirm when the new pricing options will be implemented for Windows Azure, VentureBeat reported.

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