Medium1 markMultiple Choice
Domain 1.1: Define Cloud ComputingCloud ConceptsPricing Models

AZ-900 · Question 03 · Domain 1.1: Define Cloud Computing

A company wants to transition from purchasing physical servers to a model where they only pay for the computing resources they use. Which cloud computing model does this describe?

Answer options:

A.

Fixed-price model

B.

Capital Expenditure (CapEx) model

C.

Consumption-based model

D.

Bring Your Own License (BYOL) model

How to approach this question

Look for the keyword 'pay for the computing resources they use'.

Full Answer

C.Consumption-based model✓ Correct
Cloud service providers operate on a consumption-based model, which means that end users only pay for the resources that they use. Whatever they use is what they pay for.

Common mistakes

Confusing CapEx (upfront costs) with OpEx (ongoing consumption costs).

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