The basic billing model
. Typically, a customer is paying for the greater of inbound
traffic. Traffic is divided into 5 minute interval
s, and the 95th percentile
is used for billing.
Typical extensions to this include:
- Committed Rate
- This is the rate a customer will pay for, whether or not they actually use that amount of bandwidth. It is also used for computing various premium charges.
- Exceed Rate
- If the 95th percentile is higher than the committed rate, the customer typically pays a premium (usually about 125% of the committed rate cost) on this traffic.
- Burst Rate
- For all traffic which exceeds the Committed Rate by some multiple (usually 4x), the customer pays a burst rate, which is often a bit-based exorbitant cost.
The equation looks something like this:
C = committed rate
P = price at committed rate
R95 = 95th %ile rate
Ri = index of rate values
E = exceed rate premium
T = burst rate threshold
B = burst rate premium
- Price =
- (C * P)
- + (max(0,R95-C)* E* P)
- + sum (all i, if(Ri > T, Ri*B*P))