An enterprise starting its digital transformation plans to move existing virtual machines from an aging on-premises data center to Google Cloud without changing the applications themselves. Compared with purchasing new servers on-premises, which primary business benefit does this infrastructure modernization deliver for the finance department?
It increases depreciation tax deductions by acquiring new physical servers.
It shifts spending from capital purchases to pay-as-you-go operational costs while providing elastic capacity.
It requires longer capacity-planning cycles that align with multi-year procurement schedules.
It locks in fixed hardware performance tiers for the next five years to simplify budgeting.
Modernizing infrastructure by relocating unchanged workloads to Google Cloud converts large, upfront capital expenditures for server hardware into ongoing operational expenses that scale with actual usage. Because cloud resources can be started, stopped, and resized on demand, the company avoids tying cash to depreciating assets and gains elastic capacity. The distractors describe outcomes more typical of staying on-premises: committing to fixed hardware tiers, seeking depreciation benefits from new equipment purchases, or continuing slow procurement cycles-none of which improve financial agility.
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