Microsoft Azure Fundamentals AZ-900 Practice Question
Your company is considering migrating its on-premises data center to the cloud. The Chief Financial Officer (CFO) wants to know how cloud billing could affect operating costs. Which billing approach that aligns with the cloud consumption-based model should you explain to the CFO?
One-time payment for perpetual use of software hosted in the cloud.
Pay-as-you-go, where costs are dependent on the amount of services and resources consumed.
Pay-in-advance, with a discount applied for committing to a set amount of resources for the year.
Fixed monthly fee, where the company pays a predetermined fee each month for a package of services.
In a consumption-based model, charges scale directly with the cloud resources consumed, eliminating capital expenses for hardware and allowing costs to rise or fall with demand. This pay-as-you-go structure offers financial flexibility and scalability. By contrast, paying in advance for reserved capacity, a fixed monthly subscription, or a one-time perpetual license are not consumption-based because their costs are predetermined and not tied to actual usage.
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Microsoft Azure Fundamentals AZ-900
Cloud Concepts
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