ExpertMedium1 markMultiple Choice
AZ-900 · Question 06 · Domain 1.2: Describe Benefits of Cloud Services
A company wants to stop purchasing physical servers upfront and instead move to a pay-as-you-go model where they are billed monthly for the resources they consume. Which financial shift does this represent?
A company wants to stop purchasing physical servers upfront and instead move to a pay-as-you-go model where they are billed monthly for the resources they consume. Which financial shift does this represent?
Answer options:
A.
Moving from OpEx to CapEx
B.
Moving from CapEx to OpEx
C.
Moving from IaaS to PaaS
D.
Moving from Public to Private Cloud
How to approach this question
Identify the financial terms for upfront costs (CapEx) and ongoing consumption costs (OpEx).
Full Answer
B.Moving from CapEx to OpEx✓ Correct
Purchasing physical servers is a Capital Expenditure (CapEx) because it requires a large upfront investment. Cloud computing uses a consumption-based model, which is an Operational Expenditure (OpEx), where you pay monthly only for what you use.
Common mistakes
Getting CapEx and OpEx backwards.
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