CGEIT · Question #691
Which of the following provides an enterprise with the BEST understanding of the value proposition for employing a new cloud service?
The correct answer is C. Return on investment (ROI). Return on Investment (ROI) provides an enterprise with the best understanding of the financial value proposition for employing a new cloud service.
Question
Which of the following provides an enterprise with the BEST understanding of the value proposition for employing a new cloud service?
Options
- AKey risk indicators (KRIs).
- BService level agreements (SLAs).
- CReturn on investment (ROI).
- DCustomer satisfaction surveys.
How the community answered
(40 responses)- A5% (2)
- B10% (4)
- C83% (33)
- D3% (1)
Why each option
Return on Investment (ROI) provides an enterprise with the best understanding of the financial value proposition for employing a new cloud service.
Key Risk Indicators (KRIs) measure potential risks, not the value proposition or financial benefits.
Service Level Agreements (SLAs) define performance expectations and service quality, but they do not quantify the financial return or overall business value.
ROI is a financial metric that directly calculates the profitability of an investment by comparing the gains from the investment against its cost. For a new cloud service, ROI quantifies the net benefits, such as cost savings, increased revenue, or improved efficiency, making it the clearest indicator of economic value.
Customer satisfaction surveys measure user experience and perception, which contribute to value, but do not directly measure the financial return or value proposition.
Concept tested: Cloud service value proposition
Source: https://azure.microsoft.com/en-us/pricing/tco/calculator/
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