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Difficulty: EasyUnderstand concepts of cloud economics

A mobile gaming startup is launching a multiplayer game and wants to avoid the large upfront costs of purchasing physical servers. Instead, they want to pay only for the server capacity they use during active gaming sessions. Which two of the following cloud economic concepts directly support this strategy? (Select TWO.)

  1. Shifting from upfront capital expenses (CapEx) to variable operating expenses (OpEx)Answer
  2. Paying for services on a variable, pay-as-you-go basisAnswer
  3. C
    Maximizing upfront capital expenditures (CapEx) to secure long-term physical assets
  4. D
    Adopting a fixed-capacity provisioning model to ensure maximum resources are always online
  5. E
    Relying on physical hardware depreciation schedules to reduce monthly billing costs

Answer

Shifting from upfront capital expenses (CapEx) to variable operating expenses (OpEx) and paying for services on a variable, pay-as-you-go basis are the concepts that support this strategy.
Shifting from capital expenditures to operating expenditures eliminates upfront infrastructure costs, while a pay-as-you-go model ensures the organization only pays for the active resources it consumes.

Step-by-Step Solution

1
Identify the startup's goal of avoiding upfront hardware costs and paying only for consumed capacity.
The goal requires a shift from capital expenses (CapEx) to operating expenses (OpEx).
CapEx involves upfront hardware purchases, whereas OpEx involves pay-as-you-go operating costs.
2
Select the cloud economics concepts that align with paying only for active capacity.
A variable, pay-as-you-go model and shifting to OpEx match the requirements.
These models ensure costs scale dynamically with usage rather than requiring flat upfront fees.

Key Concept

Understand concepts of cloud economics
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Understand concepts of cloud economics

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