A company wants to move away from purchasing physical servers and instead pay monthly for the computing resources they consume. Which financial model does this represent?

Answer options:

Capital Expenditure (CapEx)

Operational Expenditure (OpEx)

Fixed Cost Model

Economies of Scale

How to approach this question

Identify the difference between upfront costs and ongoing/consumption-based costs.

Full Answer

B.Operational Expenditure (OpEx)✓ Correct

Cloud computing shifts IT spending from Capital Expenditure (CapEx - buying hardware) to Operational Expenditure (OpEx - paying for services as you use them).

Common mistakes

Mixing up CapEx and OpEx.

Question 03 All questions Question 05

Practice the full Azure Fundamentals AZ-900 Practice Exam 6

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A company wants to move away from purchasing physical servers and instead pay monthly for the computing resources they consume. Which financial model does this represent?

How to approach this question

Full Answer

Common mistakes

Practice the full Azure Fundamentals AZ-900 Practice Exam 6

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