A retail company decides to host its inventory database in Microsoft Azure. Instead of purchasing physical servers upfront, the company pays for the database services monthly based on actual usage. What type of expense is represented by these monthly, usage-based payments?
- Operational Expenditure (OpEx)Cevap
- BCapital Expenditure (CapEx)
- CFixed Capital Expenditure
- DDepreciation Expenditure
Cevap
Operational Expenditure (OpEx)
The correct answer is Operational Expenditure (OpEx). Under the consumption-based model of cloud computing, there are no upfront costs, and organizations pay for resources as they use them. These ongoing costs are classified as operational expenditures on a company's balance sheet.
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Consumption-Based Model (CapEx vs OpEx)