6. vCloud Metering : 6.3 Cost Calculation : 6.3.1 Pricing Models
   
6.3.1 Pricing Models
Installing vCloud and vCloud Networking and Security Manager data collectors creates default cost models and billing policies that integrate with vCloud Director and vCloud Networking and Security Manager. Billing policies control costs assessed to resources used. Default vCloud billing policies charge based on allocation for vCPU, memory, and storage. Cost time intervals include hourly, daily, weekly, monthly, quarterly, half-yearly, or yearly.
Instead of modifying default billing policies and pricing models, make copies and modify the duplicates. For more information, see the User’s Guide in the vCenter Chargeback Manager Documentation (http://www.vmware.com/support/pubs/vcbm_pubs.html).
Rate factors allow the scaling of base costs for a specific chargeable entity. Example use cases include the following:
*Promotional rateA service provider offers new clients a 10% discount. Instead of modifying base rates in the cost model, apply a 0.9 rate factor to reduce the base costs for client by 10%.
*Rates for unique configurationsA service provider decides to charge clients for special infrastructure configurations using a rate factor to scale costs.
VM instance pricing assigns a fixed price to a hard bundle of vCPU and memory. Virtual machine instance matrixes are linked with a pricing model. The pricing model includes the hierarchy selection criteria, a fixed pricing table, and a default fixed price. Selection criteria options include name pattern matching, custom attribute matching, or no criteria. VM instance uses a step function—if there is no entry for a particular virtual machine size, the charge is based on the next larger instance size.
vCenter Chargeback Manager 2.5 introduces VM instance pricing for all allocation models. Use VM instance pricing to create a fixed price matrix for different virtual machine bundles.