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350-401 · Question #1008

350-401 Question #1008: Real Exam Question with Answer & Explanation

The correct answer is C: Cloud provides lower upfront cost than on-premises.. Small and mid-size businesses often opt for cloud solutions primarily due to the significantly lower upfront capital expenditure compared to building and maintaining on-premises infrastructure.

Submitted by fatima_kr· Mar 6, 2026

Question

Why would a small or mid-size business choose a cloud solution over an on-premises solution?

Options

  • ACloud provides greater ability for customization than on-premises.
  • BCloud provides more control over the implementation process than on-premises.
  • CCloud provides lower upfront cost than on-premises.
  • DCloud provides higher data security than on-premises.

Explanation

Small and mid-size businesses often opt for cloud solutions primarily due to the significantly lower upfront capital expenditure compared to building and maintaining on-premises infrastructure.

Common mistakes.

  • A. On-premises solutions generally offer greater customization capabilities because the business has full control over the hardware, software stack, and environment, unlike cloud services which have predefined configurations.
  • B. On-premises solutions provide more direct control over the entire implementation process, including hardware selection, network design, and security configurations, compared to cloud environments where much is managed by the provider.
  • D. While cloud providers invest heavily in security, the statement that cloud inherently provides higher data security than on-premises is not universally true; on-premises security can be as robust, and data sovereignty/control can be better, depending on implementation and specific requirements.

Concept tested. Cloud vs. On-premises benefits (cost)

Reference. https://azure.microsoft.com/en-us/resources/cloud-computing-vs-on-premise/

Topics

#Cloud benefits#On-premises vs Cloud#Cloud economics#CAPEX/OPEX

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