In an on-premises data center, which type of cost is typically more prevalent, as opposed to in a cloud-computing model where usage-based pricing is common?
Variable costs tied to user demand
Costs related to ongoing software licensing fees
Fixed costs
Variable marketing expenses
Fixed costs are more prevalent in on-premises data centers due to the need for investing in physical servers, cooling, data center space, and maintenance regardless of the actual demand or usage, unlike in cloud-computing models where you pay for what you use, making costs more variable and aligned with demand.
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