A careful analysis of financial benefits provides a clear picture about the cost savings in cloud adoption. Which two factors should the analysis compare?

Question

Options

• AROI and CAPEX
• BCAPEX and OPEX
• CTCO and SLA
• DTCO and ROI

• A
  2% (1)
• B
  6% (3)
• C
  10% (5)
• D
  82% (40)

Explanation

Financial Advantage A careful analysis of financial benefits provides a clear picture about the cost-savings in adopting the cloud. The analysis should compare both the Total Cost of Ownership (TCO) and the Return on Investment (ROI) in the cloud and non cloud environment and identify the potential cost benefit. While calculating TCO and ROI, organizations and individuals should consider the expenditure to deploy and maintain their own infrastructure versus cloud adoption costs. While calculating the expenditures for owning infrastructure resources, organizations should include both the capital expenditure (CAPEX) and operation expenditure (OPEX). The CAPEX includes the cost of servers, storage, OS, application, network equipment, real estate, and so on. The OPEX includes the cost incurred for power and cooling, personnel, maintenance, backup, and so on. These expenditures should be compared with the operation cost incurred in adopting cloud computing. The cloud adoption cost includes the cost of migrating to the cloud, cost to ensure compliance and security, and usage or subscription fees. Moving applications to the cloud reduces CAPEX, except when the cloud is built on-premise.

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