Flexible consumption model (FCM)
A flexible consumption model allows customers to pay based on actual usage without long-term commitments, scaling costs up or down as their needs change.
A Flexible Consumption Model (FCM) gives customers the freedom to consume more or less of a service each period and pay accordingly. It reduces customer risk, lowers the barrier to entry, and aligns revenue with delivered value.
Example: A cloud analytics platform offers an FCM where customers commit to no minimum usage. In busy months, a customer may use $5,000 of resources; in quiet months, only $500. Their invoice reflects actual consumption each period with no penalties for low usage.
