Which statement best describes a fundamental economic benefit that organizations gain when they migrate from maintaining on-premises infrastructure to using cloud services?
Securing perpetual ownership of the physical infrastructure, which ultimately decreases overall expenses.
Transitioning to a variable expense model from significant upfront capital expenditure, which allows payment for only the resources that are consumed.
Buying additional on-premises server hardware to efficiently manage peak periods of demand, thereby economizing on operational costs.
Committing to fixed long-term contracts for resource provisioning, thereby ensuring budget consistency.
The transition from capital expenditures to a variable operating-expense model is a fundamental economic benefit of cloud computing. Instead of investing heavily in data centers and servers before knowing how they will be used, the cloud allows you to pay only for the compute power, storage, and other resources you actually consume. This shift from CapEx to OpEx enables organizations to use financial resources more efficiently and redirect savings to innovation and growth.
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Why is a variable expense model more efficient than capital expenses in cloud computing?
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What is the difference between CapEx and OpEx in IT infrastructure?
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How does cloud computing encourage innovation and growth through cost management?
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AWS Cloud Practitioner CLF-C02
Cloud Concepts
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