When an organization migrates its on-premises workloads to Google Cloud, how does this change its IT spending model and typically influence total cost of ownership (TCO)?
It converts most hardware purchases from OpEx to CapEx, increasing upfront expenditure but lowering variable costs.
It shifts most IT spending from capital expenditures to operational expenditures, reducing large upfront investments and aligning cost with usage.
It eliminates both CapEx and OpEx since Google Cloud absorbs all costs for customers.
It increases both CapEx and OpEx because cloud resources require new data-center leases and ongoing maintenance contracts.
Moving to Google Cloud replaces most large, upfront hardware purchases with pay-as-you-go billing for services that are consumed. Because capital expenses such as servers, data-center space, and related depreciation are avoided, the financial model shifts toward operational expenditures. Costs become more closely aligned with actual usage, which lets the company scale spending up or down as demand changes. This OpEx-focused model generally lowers TCO by reducing idle capacity, eliminating over-provisioning, and passing many maintenance and facility costs to the cloud provider. The other options are incorrect because the cloud does not increase CapEx, require new data-center leases, or remove all costs entirely.
Ask Bash
Bash is our AI bot, trained to help you pass your exam. AI Generated Content may display inaccurate information, always double-check anything important.
What is the difference between CapEx and OpEx in IT spending?
Open an interactive chat with Bash
What factors contribute to a lower total cost of ownership (TCO) in Google Cloud?
Open an interactive chat with Bash
How does pay-as-you-go billing align costs with usage in Google Cloud?
Open an interactive chat with Bash
What is the difference between CapEx and OpEx in IT spending?
Open an interactive chat with Bash
What is Total Cost of Ownership (TCO) in relation to cloud computing?
Open an interactive chat with Bash
How does pay-as-you-go billing work in Google Cloud?
Open an interactive chat with Bash
GCP Cloud Digital Leader
Digital Transformation with Google Cloud
Your Score:
Report Issue
Bash, the Crucial Exams Chat Bot
AI Bot
Loading...
Loading...
Loading...
Pass with Confidence.
IT & Cybersecurity Package
You have hit the limits of our free tier, become a Premium Member today for unlimited access.
Military, Healthcare worker, Gov. employee or Teacher? See if you qualify for a Community Discount.
Monthly
$19.99
$19.99/mo
Billed monthly, Cancel any time.
3 Month Pass
$44.99
$14.99/mo
One time purchase of $44.99, Does not auto-renew.
MOST POPULAR
Annual Pass
$119.99
$9.99/mo
One time purchase of $119.99, Does not auto-renew.
BEST DEAL
Lifetime Pass
$189.99
One time purchase, Good for life.
What You Get
All IT & Cybersecurity Package plans include the following perks and exams .