A company is reviewing its operational expenditures related to their data centers. Currently, substantial capital is tied up in server infrastructure, leading to waste during periods of low demand. How can the transition to a cloud service provider benefit this organization in terms of cost efficiency?
The transition to the cloud eliminates all expenses as cloud providers offer their services without charge.
Transitioning to a service provider will lead to an increase in capital expenditure due to required cloud-specific infrastructure investments.
The transition would require maintaining a constant level of infrastructure investment, similar to their own data centers.
The transition would convert significant upfront investment costs into a proportional operating expense model, with payment aligning to usage.