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CV0-003 · Question #183

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

The correct answer is A. Improving cost structure. Improving cost structure is a primary business driver for IT outsourcing and cloud adoption, converting fixed capital expenses into variable operational expenses.

Cloud Architecture and Design

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

(41 responses)
  • A
    88% (36)
  • B
    5% (2)
  • C
    7% (3)

Why each option

Improving cost structure is a primary business driver for IT outsourcing and cloud adoption, converting fixed capital expenses into variable operational expenses.

AImproving cost structureCorrect

Cloud computing and IT outsourcing shift capital expenditure (CapEx) for hardware and infrastructure to operational expenditure (OpEx) on a pay-as-you-go model. Organizations benefit from economies of scale offered by large cloud providers, reducing per-unit costs. This restructuring of IT spend is one of the most commonly cited business justifications for cloud adoption.

BImproving customer satisfaction

While customer satisfaction may improve as a secondary effect, it is not a direct or primary business reason cited for IT outsourcing decisions.

CIncreasing control over IT systems

Outsourcing IT to a third-party provider inherently reduces an organization's direct control over systems, making increased control the opposite of what outsourcing delivers.

DDecrease of security issues

Outsourcing to cloud providers introduces shared-responsibility security models and new threat surfaces, so a blanket decrease in security issues is not a guaranteed or primary business reason.

Concept tested: Business drivers for cloud computing adoption

Source: https://learn.microsoft.com/en-us/azure/cloud-adoption-framework/strategy/motivations

Topics

#cloud economics#IT outsourcing#cost structure#business drivers

Community Discussion

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