The consumption-based model allows businesses to pay only for the resources they use, enabling more accurate budgeting and reducing the risk of over-provisioning.

The consumption-based model requires a significant upfront investment in hardware and software, similar to traditional capital expenditure models.

The consumption-based model provides businesses with the flexibility to scale resources up or down based on demand, without the need for long-term commitments.

The consumption-based model is less efficient than traditional models in terms of operational costs and resource utilization.