What term is used to describe a model where consumers only pay for computing resources they utilize, similar to utility services?

The term "measured service" is used to describe a model where consumers pay only for the computing resources they actually use, similar to how utility services function. This concept is fundamental in cloud computing, enabling users to scale their resources based on demand without incurring fixed costs. It emphasizes efficiency, as costs align with usage, allowing businesses to manage expenses better and avoid overspending on unused capacity.

In the context of cloud services, measured service is closely associated with billing models that reflect real-time consumption of resources such as storage, compute power, and network traffic. Providers implement technologies that track and report usage to ensure users are billed accurately for the resources consumed, thereby enhancing transparency and cost-effectiveness.

Dynamic allocation refers to the ability to allocate resources on-the-fly, which is related but not synonymous with paying solely for usage. Cloud subscription typically implies a fixed payment model, and on-demand computing emphasizes immediate availability rather than the specific billing structure based on usage.