# Our Consumption Models

Consumption model (also called billing or cost model) refers to the approach we use to calculate and charge for products or services that we provide to our customers. Common types of consumption models in the industry include hourly rates, licenses, flat fees, subscriptions, and usage-based consumption, for example.

## ThousandEyes Consumption Models

ThousandEyes offers multiple consumption models, tailored to the specific products purchased. The following are the consumption models that are supported:

| Consumption Model                     | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Products                                                               |
| ------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------------------------- |
| Configuration-Based Consumption Model | This model is based on paying for the features, capacity, or configurations you select upfront. You define your needs—such as the number of tests or test frequency—and your consumption is calculated at the time of configuration, not based on actual performance. In this way, you know your unit requirements in advance, creating a predictable billing model. For more information, see [Configuration-Based Consumption Model](https://docs.thousandeyes.com/product-documentation/user-management/usage-and-billing/our-consumption-models/configuration-based-consumption-model).            | Cloud and Enterprise Agents                                            |
| Usage-Based Consumption Model         | This model is based on the actual usage of a service or resource during the billing period. You purchase a set number of units based on anticipated needs (often estimated using historical usage), and those units are consumed as you use the service. This model allows for more flexibility but introduces variability in consumption, as your actual usage may differ from your forecasts. For more information, see [Usage-Based Consumption Model](https://docs.thousandeyes.com/product-documentation/user-management/usage-and-billing/our-consumption-models/usage-based-consumption-model). | Cloud Insights and Traffic Insights                                    |
| License-Based Consumption Model       | This model bases the cost on the number of devices equipped to perform tests and collect data. For more information, see [Device Agent Consumption Model](https://docs.thousandeyes.com/product-documentation/user-management/usage-and-billing/our-consumption-models/device-agent-consumption-model).                                                                                                                                                                                                                                                                                                | Endpoint Agents, Device Agents, Cloud Insights, and Internet Insights. |

## Learn More

Our consumption models are built around the concept of units (except for Licensing), which are used to measure service consumption. These models involve setting predefined allocations to manage usage limits and calculating units to determine resource consumption. Understanding how these elements work together is key to optimizing your experience. The following articles dive deeper into these topics:

* [About Units](https://docs.thousandeyes.com/product-documentation/user-management/usage-and-billing/about-usage-units): Learn what units are, how they are defined, and how they impact your overall usage.
* [Test Type Layers and Units](https://docs.thousandeyes.com/product-documentation/user-management/usage-and-billing/test-layers-units): Explore the different layers within test types and how they are associated with units.
* [Calculating Units](https://docs.thousandeyes.com/product-documentation/user-management/usage-and-billing/calculating-units): Gain insights into how units are calculated and how usage is tracked across different services.
* [Setting Quotas](https://docs.thousandeyes.com/product-documentation/user-management/usage-and-billing/setting-quotas): Understand how to set quotas across your account groups to control and spread your resource usage effectively.
* [FAQs Usage](https://docs.thousandeyes.com/product-documentation/user-management/usage-and-billing/usage-faqs)


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