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810-440 · Question #73

Which two benefits does IT as a Service provide to the customer? (Choose two.)

The correct answer is B. Reduced CAPEX. D. Reduced TCO.. IT as a Service (ITaaS) benefits customers by converting capital expenditures into operational expenses and reducing the overall cost of ownership for IT infrastructure.

Executing the Business Architecture Approach

Question

Which two benefits does IT as a Service provide to the customer? (Choose two.)

Options

  • AReduced OPEX.
  • BReduced CAPEX.
  • CReduced ROI.
  • DReduced TCO.
  • EReduced Chargeback.

How the community answered

(34 responses)
  • A
    3% (1)
  • B
    88% (30)
  • C
    3% (1)
  • E
    6% (2)

Why each option

IT as a Service (ITaaS) benefits customers by converting capital expenditures into operational expenses and reducing the overall cost of ownership for IT infrastructure.

AReduced OPEX.

ITaaS typically converts CAPEX into OPEX, meaning it generally *increases* OPEX as recurring service fees become the primary cost.

BReduced CAPEX.Correct

IT as a Service shifts the financial model from purchasing and owning hardware and software (Capital Expenditure - CAPEX) to consuming IT resources on demand and paying for usage, effectively reducing the need for large upfront investments.

CReduced ROI.

ITaaS aims to *increase* Return on Investment (ROI) by providing more agile, scalable, and cost-effective IT resources that better support business goals, not reduce it.

DReduced TCO.Correct

IT as a Service reduces the Total Cost of Ownership (TCO) because the customer offloads many costs associated with infrastructure acquisition, maintenance, upgrades, and depreciation to the service provider, leading to lower overall long-term expenses.

EReduced Chargeback.

Chargeback is an internal accounting mechanism; while ITaaS might simplify internal chargeback processes, it does not reduce 'chargeback' as a benefit to an external customer from a service provider.

Concept tested: IT as a Service financial benefits

Source: https://www.cisco.com/c/en/us/solutions/cloud/it-as-a-service.html

Topics

#IT as a Service#CAPEX reduction#TCO reduction

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