A company is planning to migrate its workloads to Azure. The finance department wants to understand the cash flow impact of moving from their traditional on-premises data center to a consumption-based cloud model. Which of the following describes a key financial characteristic of this transition?
- The company shifts from paying upfront capital expenditures (CapEx) to paying ongoing operational expenditures (OpEx) based on usage.Cevap
- BThe company shifts from paying ongoing operational expenditures (OpEx) to paying upfront capital expenditures (CapEx) for cloud hardware.
- CThe company must capitalize the cost of all virtual machines and depreciate them over a five-year period.
- DThe company eliminates all operational expenditures (OpEx) because Azure resources are treated as fixed physical assets.
Cevap
The company shifts from paying upfront capital expenditures (CapEx) to paying ongoing operational expenditures (OpEx) based on usage.
The correct option is correct because migrating to a consumption-based cloud model removes the need for upfront capital investment in physical infrastructure (CapEx) and replaces it with ongoing, usage-based operational expenses (OpEx).
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Anahtar Kavram
Consumption-based models shift costs from CapEx to OpEx