CLOUD-DIGITAL-LEADER · Question #381
An organization has recently completed a migration from on-premises to Google Cloud. How has cost management been affected?
The correct answer is A. Costs will primarily shift from CapEx to OpEx. On-premises infrastructure requires large upfront capital expenditures (CapEx) to purchase servers, networking equipment, and data center facilities. After migrating to the cloud, those costs convert to operational expenditures (OpEx) - ongoing, usage-based payments billed…
Question
An organization has recently completed a migration from on-premises to Google Cloud. How has cost management been affected?
Options
- ACosts will primarily shift from CapEx to OpEx.
- BCosts will primarily shift from OpEx to CapEx.
- CCost management will stay the same, but the total cost of ownership (TCO) will be lower.
- DCost management will stay the same, but the total cost of ownership (TCO) will be higher.
How the community answered
(35 responses)- A91% (32)
- C3% (1)
- D6% (2)
Explanation
On-premises infrastructure requires large upfront capital expenditures (CapEx) to purchase servers, networking equipment, and data center facilities. After migrating to the cloud, those costs convert to operational expenditures (OpEx) - ongoing, usage-based payments billed periodically. This shift eliminates the need to predict and commit to hardware years in advance, but it also changes how finance teams budget, forecast, and report IT costs, often requiring new FinOps practices.
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