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CV0-002 · Question #183

Which of the following is a business reason for IT outsourcing and cloud computing?

The correct answer is A. Improving cost structure. A primary business reason for adopting IT outsourcing and cloud computing is to improve the cost structure by converting capital expenditures to operational expenditures and leveraging economies of scale.

Cloud architecture

Question

Which of the following is a business reason for IT outsourcing and cloud computing?

Options

  • AImproving cost structure
  • BImproving customer satisfaction
  • CIncreasing control over IT systems
  • DDecrease of security issues

How the community answered

(47 responses)
  • A
    89% (42)
  • B
    2% (1)
  • C
    6% (3)
  • D
    2% (1)

Why each option

A primary business reason for adopting IT outsourcing and cloud computing is to improve the cost structure by converting capital expenditures to operational expenditures and leveraging economies of scale.

AImproving cost structureCorrect

Cloud computing and IT outsourcing typically allow organizations to convert large capital expenditures (CapEx) on hardware and infrastructure into more manageable operational expenditures (OpEx). This model improves financial flexibility, reduces upfront investment, and can lower overall IT costs by utilizing provider economies of scale and expertise.

BImproving customer satisfaction

While outsourcing and cloud computing can indirectly lead to improved customer satisfaction through better service delivery, it is not the fundamental business driver for initially adopting these strategies.

CIncreasing control over IT systems

Organizations typically relinquish some direct control over their IT systems when outsourcing or moving to the cloud, as the provider manages the underlying infrastructure.

DDecrease of security issues

Cloud computing and outsourcing introduce a shared responsibility model for security and new types of security risks, rather than inherently decreasing overall security issues.

Concept tested: Business reasons for cloud adoption

Source: https://azure.microsoft.com/en-us/solutions/cloud-migration/business-case/

Topics

#cloud business drivers#cost optimization#IT outsourcing

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