A company wants to stop purchasing physical servers upfront and instead move to a pay-as-you-go model where they are billed monthly for the resources they consume. Which financial shift does this represent?

Answer options:

Moving from OpEx to CapEx

Moving from CapEx to OpEx

Moving from IaaS to PaaS

Moving from Public to Private Cloud

How to approach this question

Identify the financial terms for upfront costs (CapEx) and ongoing consumption costs (OpEx).

Full Answer

B.Moving from CapEx to OpEx✓ Correct

Moving from CapEx to OpEx

Purchasing physical servers is a Capital Expenditure (CapEx) because it requires a large upfront investment. Cloud computing uses a consumption-based model, which is an Operational Expenditure (OpEx), where you pay monthly only for what you use.

Common mistakes

Getting CapEx and OpEx backwards.

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Practice the full Azure Fundamentals AZ-900 Practice Exam 3

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A company wants to stop purchasing physical servers upfront and instead move to a pay-as-you-go model where they are billed monthly for the resources they consume. Which financial shift does this represent?

How to approach this question

Full Answer

Common mistakes

Practice the full Azure Fundamentals AZ-900 Practice Exam 3

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