What impact on business can cloud technologies provide?

Question

Options

• AReducing travel expenses and enhancing productivity
• BReducing application's response time to streamline transactions and getting better customer
• CReducing project risk
• DImproving green brand awareness

• A
  4% (1)
• C
  88% (23)
• D
  8% (2)

Explanation

Cloud computing fundamentally shifts infrastructure from a capital expense model (buy servers upfront) to an on-demand model, which directly reduces project risk (C). Organizations can prototype, scale, and even shut down projects without massive sunk costs - if a project fails, losses are minimized because there was no large upfront hardware investment. This agility, combined with managed services that offload operational responsibility, is one of cloud's most cited business value propositions.

Why the distractors fall short:

• A (travel expenses): Reducing travel is a benefit of collaboration/remote-work tools broadly - not a defining business impact of cloud technology itself.
• B (response time): Improving application performance is a technical benefit, not a primary business impact; it also applies to many non-cloud optimizations.
• D (green brand awareness): Sustainability is a peripheral marketing benefit for some organizations, not a core business impact of cloud adoption.

Memory tip: Think of cloud as "rent before you own" - the ability to experiment cheaply and exit without financial penalty is the essence of risk reduction, which is why C is the business-level answer exams are looking for.

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