A company's current billing agreement is static. If the company were to migrate to an entirely IaaS-based setup, which of the following billing concepts would the company be adopting?

The correct answer is C. Variable cost. Variable cost is a billing concept that means the customer pays only for the resources they consume, and the cost varies depending on the usage. This is different from fixed cost, which means the customer pays a predetermined amount regardless of the usage. IaaS-based setups…

Business Principles of Cloud

Question

Options

AEnterprise agreement
BPerpetual
CVariable cost
DFixed cost

How the community answered

(20 responses)

B
5% (1)
C
85% (17)
D
10% (2)

Explanation

Variable cost is a billing concept that means the customer pays only for the resources they consume, and the cost varies depending on the usage. This is different from fixed cost, which means the customer pays a predetermined amount regardless of the usage. IaaS-based setups typically use variable cost billing, as the customer can provision and deprovision resources on demand, and only pay for what they use. This allows the customer to optimize their costs and scale their resources according to their needs.

Topics

#variable cost#IaaS billing#cloud pricing models#OpEx

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