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AZ-900 · Question #250

Identify a justification that validates that fact that Azure lowers a company's capital expenditure costs.

The correct answer is B. Azure Allow you to pay monthly based on usage rather than pay upfront of physical hardware.. Azure lowers a company's capital expenditure (CapEx) costs because it allows organizations to pay for resources monthly based on usage, eliminating the need for large upfront investments in physical hardware.

Submitted by tunde_lagos· Mar 5, 2026Describe Cloud Concepts

Question

Identify a justification that validates that fact that Azure lowers a company's capital expenditure costs.

Options

  • AAzure allows you to reduce the level of IT staffing that is required to maintain on-premises
  • BAzure Allow you to pay monthly based on usage rather than pay upfront of physical hardware.
  • CAzure allows you to pay annually to reduce overall costs that are associated with its platform-as-
  • DAzure Reduces the amount of maintenance that is associated with the configuration of firewalls,

How the community answered

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

Why each option

Azure lowers a company's capital expenditure (CapEx) costs because it allows organizations to pay for resources monthly based on usage, eliminating the need for large upfront investments in physical hardware.

AAzure allows you to reduce the level of IT staffing that is required to maintain on-premises

Reducing IT staffing levels relates to operational expenditure savings, not capital expenditure.

BAzure Allow you to pay monthly based on usage rather than pay upfront of physical hardware.Correct

Capital expenditure refers to funds used by a company to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment. By adopting Azure, companies switch from purchasing and maintaining physical hardware (CapEx) to paying for IT resources as a service on a consumption-based model (operational expenditure), thereby reducing upfront capital outlays.

CAzure allows you to pay annually to reduce overall costs that are associated with its platform-as-

While annual payment options might exist for certain services or commitments, the fundamental shift from CapEx to OpEx is driven by the consumption-based model, not necessarily annual payments.

DAzure Reduces the amount of maintenance that is associated with the configuration of firewalls,

Reducing maintenance on firewalls relates to operational expenditure savings and reduced management overhead, not capital expenditure.

Concept tested: Differentiating Capital Expenditure (CapEx) and Operational Expenditure (OpEx) in cloud

Source: https://learn.microsoft.com/en-us/azure/cloud-adoption-framework/ready/considerations/finance-costs

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