Crucial Exams

GCP Professional Cloud Architect Practice Question

A media company is retiring the on-premises servers that power its 24×7 video-rendering farm and will run the workload on GPU-optimized Spot VMs in Google Cloud. Today the company buys servers outright and depreciates them over five years. In Google Cloud it will sign 1-year committed use discounts and pay the monthly bill from its operations budget. From a financial-management perspective, which statement best characterizes this change?

  • Cloud consumption charges, even when reduced by committed use discounts, are treated as operating expenses, replacing up-front CapEx with variable OpEx and increasing cash-flow flexibility.

  • Committed use discounts reclassify cloud spending as capital expenditure, allowing the company to continue depreciating the costs over multiple years.

  • Migrating to Google Cloud removes both CapEx and OpEx for compute because usage-based billing is offset by cloud provider tax credits.

  • Because Spot VMs can be preempted, their fees are booked as capital leases, so the costs remain CapEx amortized over the expected interruptible lifetime.

GCP Professional Cloud Architect
Analyzing and optimizing technical and business processes
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