Here's how you can effectively price cloud computing services as an entrepreneur.

Effectively pricing cloud computing services as an entrepreneur involves understanding your costs, assessing market demand, and creating pricing models that provide value to your customers while ensuring profitability for your business. Here's a step-by-step guide: Understand Your Costs Identify Your Value Proposition Research the Market Choose a Pricing Model Pay-Per-Use Subscription Tiered Pricing Usage-Based Pricing Factor in Profit Margin Consider Value-Based Pricing Test and Iterate Communicate Value Monitor Performance Stay Flexible By following these steps and taking a strategic approach to pricing, you can effectively price your cloud computing services to attract customers, drive revenue growth.

Obviously you should make sure your unit economics make sense and know your costs, margins, etc. These are important metrics for scaling and raising capital (assuming you're not bootstrapping). However, you can't lose sight of the fact that pricing is more art than science. Solutions are either a vitamin (nice to have) or aspirin (need to have). People are willing to pay more than you think to relieve pain. Find a solution that solves a significant pain point and charge for it. Your pricing strategy depends on if you're going for a land grab, if you're building sustainably as a bootstrapped startup, etc. Build a moat and integrate users' data into your solution, creating a cost to switch. Once you have a solid user base, tweak the pricing.

When pricing cloud computing services like AWS or Azure, you want to consider a few factors. First, think about the resources your app or service needs, like storage, processing power, and data transfer. Then, check the pricing models offered by AWS or Azure - they usually charge based on usage, so the more you use, the more you pay. Keep an eye on any additional services you might need, like databases or AI tools, as these can add to your costs. Finally, remember to regularly review and optimize your usage to avoid overpaying for resources you don't need.

If we're talking about consultancy here: I try to stay away from hourly/daily rates and instead focus on an outcome. If person A completes a task in 2 weeks and person B completes it in 8 weeks, person A should be payed more than person B, not less.

The price you charge is directly connected to the amount of value you bring. You don't need to start with lower prices or use market rates. This may be valid for commodities but not for intellectual creative work.

I would like to recommend the creation of offers that are inter connected. If the client purchase the offer #2, before finishing it you present the #3 and keep the wheel spinning. As an example, imagine you start offering a cost consumption review. Then your next offer can be reviewing the security posture of the company or a solution in specific.

The benefits of the cloud in terms of agility, automation and scalability are unquestionable. They allow businesses to concentrate on their core business, leaving the management of the underlying infrastructure to automation specialists. But it's also an area where entrepreneurs are exposed to cloud lock-in (also known as vendor lock-in or data lock-in) risks. Beyond purely technical and short-term costs considerations , this is something that absolutely must be addressed.