Crucial Exams

GCP Cloud Digital Leader Practice Question

Your company currently purchases physical servers and records them as five-year capital assets. The CIO proposes moving the analytics platform to Google Cloud managed services instead. From a financial perspective, which outcome best describes how this migration will change the cost structure and total cost of ownership (TCO)?

  • OpEx is converted into CapEx because cloud resources are paid for upfront for several years, thereby lowering TCO.

  • Upfront hardware purchases (CapEx) are replaced by pay-as-you-go operating expenses (OpEx), which can reduce TCO by avoiding hardware depreciation and over-provisioning.

  • CapEx remains about the same, but OpEx rises because cloud requires multi-year reserved-hardware contracts, increasing overall TCO.

  • Both CapEx and OpEx increase because the company must still purchase hardware while also paying cloud subscription fees.

GCP Cloud Digital Leader
Digital Transformation with Google Cloud
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