A financial technology company, FinVerify, is migrating its transaction auditing platform to AWS. Previously, the company had to purchase and deploy physical servers, storage arrays, and network switches months in advance to prepare for annual audit cycles, resulting in large upfront costs. On AWS, the company plans to provision virtual servers dynamically only during audit cycles and pay for them on a pay-as-you-go basis. Which of the following best describes the economic transition FinVerify is making?
- ATransitioning from variable operating expenses (OpEx) to fixed capital expenses (CapEx).
- BReplacing scalable architectures with elastic resources to eliminate all variable billing.
- Transitioning from capital expenses (CapEx) to variable operating expenses (OpEx).Cevap
- DRehosting the auditing application to convert all cloud operating costs into capitalized assets.
Cevap
Transitioning from capital expenses (CapEx) to variable operating expenses (OpEx).
The correct option is the shift from capital expenses (CapEx) to variable operating expenses (OpEx). Under the traditional on-premises model, organizations invest capital upfront to acquire hardware assets. In AWS, this is replaced by a utility-style consumption model where costs are categorized as operating expenses that vary directly with resource usage.
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Shift from Capital Expenditures (CapEx) to Operating Expenditures (OpEx) in cloud economics.
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