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CLOUD-DIGITAL-LEADER · Question #203

An organization is planning its cloud expenditure. What should the organization do to control costs?

The correct answer is C. Review cloud resource costs frequently because costs depend on usage. Cloud costs are variable and usage-based, so frequent review is essential for effective cost control.

Cloud Financial Management

Question

An organization is planning its cloud expenditure. What should the organization do to control costs?

Options

  • AConsider cloud resource costs as capital expenditure in annual planning.
  • BUse only cloud resources; they have no cloud infrastructure costs.
  • CReview cloud resource costs frequently because costs depend on usage.
  • DAssess cloud resources costs only when SLO is not met by their cloud provider.

How the community answered

(28 responses)
  • A
    4% (1)
  • B
    4% (1)
  • C
    93% (26)

Why each option

Cloud costs are variable and usage-based, so frequent review is essential for effective cost control.

AConsider cloud resource costs as capital expenditure in annual planning.

Cloud spending is operational expenditure (OpEx), not capital expenditure (CapEx); treating it as CapEx misrepresents the financial model and undermines budgeting accuracy.

BUse only cloud resources; they have no cloud infrastructure costs.

Cloud resources do have costs tied to usage, provisioned capacity, storage, and network egress, so assuming no infrastructure cost is factually incorrect.

CReview cloud resource costs frequently because costs depend on usage.Correct

Cloud pricing follows an operational expenditure model where costs fluctuate based on actual resource consumption such as compute hours, storage, and data transfer. Because usage can spike or drop unexpectedly, organizations must review costs frequently to identify waste, right-size resources, and avoid bill shock. Continuous monitoring tools like cloud cost dashboards enable this ongoing visibility.

DAssess cloud resources costs only when SLO is not met by their cloud provider.

Reviewing costs only when an SLO is breached is reactive and ignores routine cost optimization, which should be independent of service-level performance.

Concept tested: Cloud cost management and usage-based pricing model

Source: https://cloud.google.com/architecture/cost-governance-best-practices

Topics

#Cloud Cost Management#Cloud Expenditure#FinOps#Cost Control

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