Consumption-based - You are billed for only what you use

Example: Serverless FaaS - You pay for no of invocations!

Fixed-price - You are billed for instances irrespective of

whether they are used or not

Example: You provision a VM instance

You pay for its lifetime irrespective of whether you use it or NOT

Example: You provision a Kubernetes cluster

You are billed irrespective of whether you use it or not