CompTIA Cloud Essentials+ (CLO-002)Business Principles of Cloud EnvironmentsEasy
A software development company is evaluating different cloud service providers. They are particularly interested in a model where they pay only for the resources consumed, such as CPU, memory, and storage, without significant upfront investments. Which cloud financial model best describes this preference?
- AFixed Expenditure (FixEx)
- BCapital Expenditure (CapEx)
- COperational Expenditure (OpEx)
- DHybrid Expenditure (HybEx)
Show answer & explanationAnswer & explanation
Correct answer: C. Operational Expenditure (OpEx)
Operational Expenditure (OpEx) refers to the pay-as-you-go model common in cloud computing, where costs are incurred based on usage. This aligns with the company's preference for paying only for consumed resources without large upfront investments.
Why the other options are wrong
- A. Fixed Expenditure (FixEx) is not a standard cloud financial model and implies static costs, which is contrary to the pay-per-use nature.
- B. Capital Expenditure (CapEx) involves significant upfront investments in assets that depreciate over time.
- D. Hybrid Expenditure (HybEx) is not a recognized financial model, though hybrid cloud is a deployment model.
Operational Expenditure (OpEx)
Funds used to run day-to-day business operations, often associated with recurring costs and pay-as-you-go models in cloud computing.
- Pay-as-you-go model
- No large upfront investments
- Costs scale with usage
Memory trick: Cloud spending can be like buying a car (CapEx) or renting one (OpEx).