A company transitions its on-premises SQL database servers to Azure SQL Database to shift their IT spending from Capital Expenditure (CapEx) to Operational Expenditure (OpEx). The administrator applies a resource tag named `BillingCode: DeptF` directly to the resource group containing the Azure SQL databases. Which of the following describes the billing classification and tagging behavior of these databases in Azure Cost Management?
- AThe database costs are categorized as Capital Expenditure (CapEx), and they are automatically grouped under the BillingCode: DeptF tag.
- BThe database costs are categorized as Capital Expenditure (CapEx), but they are not automatically grouped under the BillingCode: DeptF tag.
- CThe database costs are categorized as Operational Expenditure (OpEx), and they are automatically grouped under the BillingCode: DeptF tag.
- The database costs are categorized as Operational Expenditure (OpEx), but they are not automatically grouped under the BillingCode: DeptF tag.Answer
Answer
The database costs are categorized as Operational Expenditure (OpEx), but they are not automatically grouped under the BillingCode: DeptF tag.
Migrating to Azure SQL Database shifts costs from Capital Expenditure (CapEx), which involves upfront physical infrastructure costs, to Operational Expenditure (OpEx), which is a consumption-based, ongoing operational cost. Additionally, Azure resource tags applied to a resource group are not inherited by the resources inside that resource group. Therefore, the database costs will be categorized as OpEx, but will not show the applied tag in cost reports unless the tag is directly applied to the database resources.
Step-by-Step Solution
Key Concept
Azure resource tags are not inherited from resource groups to resources, and cloud services use a consumption-based OpEx model.