True or False: Cloud computing requires significant upfront capital expenditure (CapEx) for physical hardware.
Answer options:
A.
True
B.
False
How to approach this question
Recall the difference between CapEx (upfront) and OpEx (pay-as-you-go).
Full Answer
B.False✓ Correct
Cloud computing eliminates the capital expense (CapEx) of buying hardware and software and setting up and running on-site datacenters. It uses an OpEx model.
Common mistakes
Assuming enterprise cloud contracts require CapEx. While you can pre-pay, the fundamental model is OpEx.
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