Microsoft Azure Fundamentals (AZ-900)Describe cloud conceptsEasy
A small startup is developing a new online collaboration tool. They want to minimize upfront costs for hardware and software licenses while still having access to a robust development environment. Which cloud benefit best addresses their primary concern?
- AReduced Capital Expenditure
- BHigh Availability
- CGlobal Reach
- DElasticity
Show answer & explanationAnswer & explanation
Correct answer: A. Reduced Capital Expenditure
Reduced Capital Expenditure allows the startup to avoid large upfront investments in hardware and software, instead paying for resources as they are consumed.
Why the other options are wrong
- B. High Availability ensures services remain operational, but doesn't directly address upfront cost minimization.
- C. Global Reach allows deployment across multiple regions, which is not the primary concern of minimizing upfront costs.
- D. Elasticity allows resources to scale up or down based on demand, which is a performance benefit, not a direct cost reduction method for upfront investment.
Reduced Capital Expenditure (CapEx)
Cloud computing shifts IT spending from large upfront capital expenditures (CapEx) to operational expenditures (OpEx), allowing businesses to pay for resources on a consumption model.
- No need to purchase physical hardware.
- Pay-as-you-go model.
- Reduces initial investment and financial risk.
Memory trick: Cloud's financial freedom: no big upfront IT bills.