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:

Moving from OpEx to CapEx

Moving from CapEx to OpEx

Moving from public cloud to private cloud

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

Moving from CapEx to OpEx.

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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Practice the full Azure Fundamentals AZ-900 Practice Exam 4

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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?

How to approach this question

Full Answer

Common mistakes

Practice the full Azure Fundamentals AZ-900 Practice Exam 4

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