Costs for on-premises environments typically include physical hardware, facility expenses, and utilities regardless of the current demand for resources.
True
False
The statement is correct. On-premises environments usually involve significant upfront capital expenditure for hardware purchase, as well as ongoing costs for maintaining the physical space, such as rent or real estate, power, and cooling. These costs are incurred even if the demand for resources fluctuates, leading to potential inefficiencies when resources are underutilized.
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