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350-401 · Question #1008

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

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.

How the community answered

(23 responses)
  • C
    96% (22)
  • D
    4% (1)

Why each option

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.

ACloud provides greater ability for customization than on-premises.

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.

BCloud provides more control over the implementation process than on-premises.

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.

CCloud provides lower upfront cost than on-premises.Correct

Cloud solutions typically operate on a pay-as-you-go or subscription model, eliminating the need for large initial investments in hardware, software licenses, and datacenter facilities that are required for on-premises solutions, making them budget-friendly for SMBs.

DCloud provides higher data security than on-premises.

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)

Source: 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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