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.
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)- A3% (1)
- B88% (30)
- C3% (1)
- E6% (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.
ITaaS typically converts CAPEX into OPEX, meaning it generally *increases* OPEX as recurring service fees become the primary cost.
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.
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.
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.
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
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