ExpertMedium1 markMultiple Choice
AZ-900 · Question 04 · Domain 1.2: Benefits of Cloud Services
A company wants to move away from purchasing physical servers and instead pay monthly for the computing resources they use. Which financial shift does this represent?
A company wants to move away from purchasing physical servers and instead pay monthly for the computing resources they use. Which financial shift does this represent?
Answer options:
A.
Moving from OpEx to CapEx
B.
Moving from CapEx to OpEx
C.
Moving from public cloud to private cloud
D.
Moving from IaaS to SaaS
How to approach this question
Identify the terms for upfront costs vs. ongoing consumption costs.
Full Answer
B.Moving from CapEx to OpEx✓ Correct
Purchasing physical servers is a Capital Expenditure (CapEx). Paying monthly for consumed cloud resources is an Operational Expenditure (OpEx). Cloud computing allows businesses to shift from CapEx to OpEx.
Common mistakes
Reversing the definitions of CapEx and OpEx.
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