ExpertEasy1 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 consume. Which financial model does this represent?
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:
A.
Capital Expenditure (CapEx)
B.
Operational Expenditure (OpEx)
C.
Fixed Cost Model
D.
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
Operational Expenditure (OpEx)
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.
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