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810-440 · Question #150

From the customer perspective, which are two benefits that result when moving from an on premise solution to a Cloud solution? (Choose two.)

The correct answer is B. Lower initial investment C. Higher ROI from investment. Moving to a cloud solution typically provides customers with lower initial investment costs and the potential for a higher return on investment compared to on-premise solutions.

Executing the Business Architecture Approach

Question

From the customer perspective, which are two benefits that result when moving from an on premise solution to a Cloud solution? (Choose two.)

Options

  • ARecurring revenue stream
  • BLower initial investment
  • CHigher ROI from investment
  • DIncreased value of company
  • ELong-term business cycles benefits

How the community answered

(28 responses)
  • B
    96% (27)
  • E
    4% (1)

Why each option

Moving to a cloud solution typically provides customers with lower initial investment costs and the potential for a higher return on investment compared to on-premise solutions.

ARecurring revenue stream

A recurring revenue stream is a benefit for the vendor (cloud provider), not typically for the customer adopting a cloud solution.

BLower initial investmentCorrect

Cloud solutions often reduce the need for significant upfront capital expenditure on hardware, software licenses, and infrastructure, resulting in a lower initial investment for the customer.

CHigher ROI from investmentCorrect

By shifting from large capital expenses to operational expenses, optimizing resource utilization, and gaining scalability, cloud solutions can lead to a higher return on investment (ROI) over time for the customer.

DIncreased value of company

While cloud adoption can indirectly contribute to efficiency and potentially company value, "Increased value of company" is too broad and not a direct, immediate, or guaranteed benefit from a purely financial/operational perspective of moving to cloud.

ELong-term business cycles benefits

"Long-term business cycles benefits" is vague and not a specific, commonly cited primary financial benefit from the customer's perspective of moving to cloud, unlike lower initial investment and higher ROI.

Concept tested: Cloud adoption customer benefits

Source: https://azure.microsoft.com/en-us/overview/what-is-cloud-computing/#benefits

Topics

#cloud benefits#on-premise vs cloud#ROI#initial investment

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