Cloud computing represents one of the many approaches to distributed computing. The sudden success and wide adoption of cloud computing is mainly due to the fact that unlike other distributed computing models, cloud computing comes with a business model.
In cloud computing business model everything is offered as a service. In the business model using software as a service (SaaS), end users are provided access to application software and databases. The cloud service provider manage the infrastructure and platforms needed for the running of the applications or services. Since the user can access application as and when it is needed, this model SaaS is also called as "On-demand Software". The revenue model consists of pricing end user on pay-per use basis or based on subscription fee model.
Figure 4: Cloud Business Model Picture source
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