How to pay cloud providers?

The cloud has become an indispensable tool for businesses of all sizes. Whether you're a startup or a business providing cloud solutions to your clients, leveraging cloud services can provide scalability, flexibility, and cost-effectiveness like never before. However, while the benefits of using cloud services are clear, navigating the intricacies of payment methods and billing structures across different cloud providers can take time and effort. 

Let’s demystify the payment process for cloud services; we’ll focus on three major cloud providers: Amazon Web Services (AWS), Google Cloud, and Microsoft Azure. 

How are cloud providers billing? 

Before diving into the specifics of paying each cloud provider, it's essential to understand the common billing models used in the industry.

Pay-as-you-go (PAYG) 

With this model, customers are charged based on their actual usage of resources, such as compute power, storage, and data transfer. PAYG is flexible and suitable for businesses with fluctuating workloads.  

Reserved instances (RIs) 

Cloud providers offer discounted pricing for customers who commit to using a specific amount of resources over a fixed term, typically one to three years. RIs can provide significant cost savings for predictable workloads. 

Spot instances (Google Cloud preemptible VMs, AWS spot instances) 

These are spare compute instances offered at a reduced price compared to on-demand instances. However, they can be terminated by the provider with short notice if capacity becomes limited. 

Subscription-based plans 

Some cloud services offer subscription-based pricing, where customers pay a fixed monthly or annual fee to access a set of services or features. 

How to pay a Microsoft Azure bill? 

 Azure services are priced in US dollars throughout the world. 

You can pay a Microsoft Azure bill by credit card (up to $50,000), debit card, or wire transfer. With credit and debit cards, you will automatically be charged each billing period. 

With a wire transfer, you must manually make the payment within 30 days of invoice receipt. 

How to pay an AWS bill? 

By default, you are billed in USD (US dollars), but currency can be changed. 

AWS offers several payment options to its customers, depending on their countries, including Electronic Funds Transfer, major credit cards (MasterCard, VISA, American Express) and SEPA direct debit in Europe. However, manual bank transfers are not supported in Europe. 

 How to pay a Google Cloud bill? 

Google Cloud offers two types of Cloud Billing accounts, self-served and invoiced. 

A self-serve (or Online) account lets you pay by credit or debit card or ACH direct debit, depending on your country. Payments are done automatically, and you will have access to the documents (statements, receipts and tax invoices) directly from the Google Cloud console. 

An invoiced (or Offline) account lets you pay by check or wire transfer. They send the invoices by mail or electronically. The invoices and receipts are also available in the Google Cloud console. But there is a catch, you must be eligible to opt for the invoiced account. 

How to apply for monthly invoiced billing? 

To qualify for monthly invoiced billing with Google Cloud, businesses must be registered for at least one year, anticipate spending a minimum of $40,000 annually on Google Cloud, and have invoice billing available in their country. 

 How to save on international payments fees? 

While cloud providers often convert their pricing from USD to other currencies, they may not have the best exchange rates. It might be better for you to keep the invoices in USD and to pay them via account-to-account payments. Cards are known to charge hefty fees, and making a manual bank transfer via your bank’s clunky interface is slow and error prone. 

Crezco is an account-to-account payments solution which can help you securely pay all your domestic and international providers and suppliers with one click. No more high fees or hidden charges, save up to 85% on your international payment fees compared to high-street banks. You will not be left in the dark anymore and will be able to easily monitor your payments in real-time and automatically send remittance advice to your suppliers. 

Paying for cloud services doesn't have to be complicated. By understanding the billing models and payment options offered by cloud providers like AWS, Google Cloud, and Microsoft Azure, businesses can choose the most suitable payment method based on their needs and preferences.  

Whether it's using a credit card for flexibility, setting up invoicing for predictable expenses, using account-to-account payments for easy and cost-effective transfers or opting for discounted pricing with reserved instances, cloud providers offer a range of options to accommodate different usage patterns and financial requirements.  

Ultimately, by optimising their payment strategies, businesses can maximise the value they derive from the cloud while effectively managing their costs.