January 29, 2021 By Amit Patel 2 min read

IBM Cloud is excited to announce a new billing model: Cloud Pay as you go with Committed Use. 

As your business models evolve during these challenging times, IBM’s goal is to provide a dynamic and flexible billing model to help you optimize your business.   

With this billing model, you commit to spend a certain amount on IBM Cloud and you also receive discounts across the Cloud platform. You are billed monthly based on your usage, and unlike a subscription, you continue to receive a discount even after you reach your yearly committed amount. 

How will this benefit you?

Consumption billing 

  • Unlike a subscription, you are invoiced at the service level for what you consume each month. Your monthly invoice will reflect your monthly usage charts, including any potential discounts agreed upon by IBM.  

No overages

  • No penalty for overage charges! If you spend more than the amount you committed to, you will continue to receive the same discounts agreed upon by IBM. The discounted charges will be reflected on your monthly invoice. 

Improved console experience

  • Easily visualize the progress towards a commitment. You can easily identify your discount, spending progress, and remaining time on the commitment.
  • Monthly spending is broken out by month. You can manage your commitment by viewing any change in spending month-to-month and viewing your spending trends over time. 
  • For additional details about your commitment, you can click into an individual month, and you’ll be sent to a view of the usage dashboard for that particular month.

New US-based customers who purchase the IBM Cloud Pay as you go with Committed Use billing model from this point forward will begin to see these benefits, by default. If you’re an existing customer and are interested in adopting the new model, contact your sales representative for more details. The new billing model is available to select US-based customers today, but will continue to roll out in the US and worldwide throughout 2021. For more information, check out the Pay as you go with Committed Use documentation. 

Get in touch

Ready to embark on your new experience? Speak to your sales representative today about our new model. 

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