CLOUD-DIGITAL-LEADER · Question #216
CLOUD-DIGITAL-LEADER Question #216: Real Exam Question with Answer & Explanation
The correct answer is C: Away from capital expenditure toward operational expenditure. Computing costs are predictable and relatively fixed in traditional IT environments. An organization purchases computing capacity upfront and uses it over time. The total cost of ownership is fairly easier to calculate with this setup. By contrast, cloud computing operates on a p
Question
When an organization adopts cloud technology, how does their total cost of ownership (TCO) shift?
Options
- AAway from cost management toward capital expenditure
- BAway from operational expenditure toward cost management
- CAway from capital expenditure toward operational expenditure
- DAway from operational expenditure toward capital expenditure
Explanation
Computing costs are predictable and relatively fixed in traditional IT environments. An organization purchases computing capacity upfront and uses it over time. The total cost of ownership is fairly easier to calculate with this setup. By contrast, cloud computing operates on a pay-as-you-go basis, with no upfront payments. Resources and services are available on-demand, and IT spend fluctuates based on The traditional approach prioritizes capital expenditure (CapEx), whereas cloud economics favors operating expenses (OpEx).
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