ExpertEasy1 markMultiple Choice
AZ-900 · Question 5 · Domain 1.2: Benefits of Cloud Services
A company wants to transition from purchasing physical servers to paying a monthly fee based on their actual resource usage. Which financial model does this represent?
A company wants to transition from purchasing physical servers to paying a monthly fee based on their actual resource usage. Which financial model does this represent?
Answer options:
A.
Capital Expenditure (CapEx)
B.
Operational Expenditure (OpEx)
C.
Fixed Cost Model
D.
Sunk Cost
How to approach this question
Identify the financial term for pay-as-you-go, ongoing expenses.
Full Answer
B.Operational Expenditure (OpEx)✓ Correct
Operational Expenditure (OpEx)
Operational Expenditure (OpEx) is an ongoing cost for running a product, business, or system. Cloud computing relies on an OpEx model where you pay for what you use (consumption-based).
Common mistakes
Choosing CapEx. Remember: CapEx = physical hardware upfront. OpEx = pay-as-you-go cloud services.
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