A retail logistics company, ZenithFreight, is moving its on-premises package tracking system to AWS. The company currently pays upfront for physical servers, network switches, and data center cooling, which must be depreciated over five years. On AWS, ZenithFreight will pay a monthly invoice based on the compute and storage resources it actually uses each hour. Which of the following represents the primary cloud economics shift ZenithFreight is making, and its associated benefit?
- AShifting from Operational Expenditures (OpEx) to Capital Expenditures (CapEx), which allows the company to own and depreciate cloud assets over time.
- BShifting from Capital Expenditures (CapEx) to Operational Expenditures (OpEx), which requires the company to make heavy upfront investments to secure low hourly rates for all workloads.
- Shifting from Capital Expenditures (CapEx) to Operational Expenditures (OpEx), which allows the company to trade fixed capital expenses for variable operational costs.Cevap
- DShifting from Capital Expenditures (CapEx) to Operational Expenditures (OpEx) by rehosting all workloads, which eliminates the need to manage application-level operational costs.
Cevap
Shifting from Capital Expenditures (CapEx) to Operational Expenditures (OpEx), which allows the company to trade fixed capital expenses for variable operational costs.
The correct answer accurately describes the transition from Capital Expenditures (CapEx) to Operational Expenditures (OpEx). On-premises data centers require substantial upfront capital investments (CapEx) for hardware and facilities that must be depreciated. In contrast, AWS allows businesses to pay for services on a variable, pay-as-you-go basis as an ongoing operational cost (OpEx).
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CapEx to OpEx Shift
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