A software startup wants to build and test a prototype for a new mobile application on Microsoft Azure. Because the application's market success is uncertain, the startup's management wants to ensure that if they decide to cancel the project after one month, they will not be left with unused physical hardware or ongoing hosting bills. Which feature of Azure's consumption-based billing model supports this goal?
- AIt allows them to classify the cloud resources as capital expenditure (CapEx) and write off the remaining value of the prototype.
- It requires no upfront hardware purchases and allows them to stop paying for resources immediately when the prototype is deleted.Answer
- CIt automatically transfers the financial responsibility for all operating system and software licenses to Microsoft under a shared responsibility model.
- DIt provides a fixed, pre-paid capacity tier that guarantees a low cost regardless of whether the resources are running or stopped.
Answer
The correct option is the one stating that it requires no upfront hardware purchases and allows them to stop paying for resources immediately when the prototype is deleted.
The consumption-based model allows the startup to avoid upfront costs (Capital Expenditure or CapEx) by charging only for active resources. Since billing stops immediately when resources are de-provisioned or deleted, the startup can cancel the project with zero ongoing costs or wasted hardware assets, making it an operational expenditure (OpEx).
Step-by-Step Solution
Key Concept
Consumption-Based Model (CapEx vs OpEx)