A company is deploying a new application and must decide whether to build an infrastructure to host the application on premises or in the cloud. Which of the following BEST describes the financial…

Question

Options

• AThe company's capital expense will be less.
• BThe company will be able to defer licensing costs.
• CThe provider will share responsibility for the company's monthly bill.
• DMonthly operating costs will remain constant despite usage.

• A
  81% (13)
• B
  13% (2)
• C
  6% (1)

Explanation

Hosting the application in the cloud means that the company does not need to invest in building and maintaining an infrastructure to host the application on premises. This reduces the company's capital expense, which is the money spent on acquiring or upgrading fixed assets, such as servers, storage, network, and software. Instead, the company can pay for the cloud services that they use on a subscription or consumption basis, which is considered an operating expense, which is the money spent on the day-to-day running of the business. Hosting the application in the cloud can also provide other financial benefits, such as lower energy costs, higher scalability, and faster time to market.

No community discussion yet for this question.