Top Menu

Microsoft May Have a New Pricing Structure under Wraps

Microsoft brand logo

Microsoft reveals a new pricing structure for their cloud customers based on how much you want to pay.

One of the most interesting ways to buy airline tickets is through a reverse auction. We all know how an auction works: start out priced at one dollar and the bidders in the rooms bid up the price until nobody else is willing to bid the price further. The highest bidder walks away with a particular product. A reverse auction is pretty straightforward: you name the price that you are willing to pay for, let’s say for airline tickets or hotel rooms. The platform will then look for providers that will meet your price. This is a great way of getting products at precisely the price that you want to pay. Of course, you have to be realistic regarding the price that you’d like to shell out for that particular item. For example, you might want to say that you would love to ride around a 5-dollar Ferrari. But, that’s not gonna happen anytime soon, so you have to be very realistic when giving out prices in a reverse auction.

Apparently, Microsoft is possibly thinking of giving its cloud customers a reverse pricing option. They set up a particular performance level that they’re interested and a price and Microsoft will come up with a potential match. At least this is what we can gather at the latest patent powered by Microsoft regarding performance-based pricing. This could actually become a great marketing tool for Microsoft cloud computing services. As you can imagine, there is a lot of competition in this particularly large market. Referring a leader market right now sounds impossible, but things can change overnight. As competition increases in a saturated place like this, they will need all the competitive advantage that they could get. Expect a lot of consolidation in the cloud computing field, especially if there’s a market crash. But more importantly, expect the market players to get even more creative in terms snagging key counts. All in all this is a great move by Microsoft.