Microsoft Azure Fundamentals (AZ-900)Describe cloud conceptsEasy
A small startup is developing a new online collaboration tool. They want to minimize upfront IT infrastructure costs and only pay for the computing resources they consume. Which cloud benefit directly addresses this requirement?
- AReduced Capital Expenditure
- BHigh Availability
- CGlobal Reach
- DElasticity
Show answer & explanationAnswer & explanation
Correct answer: A. Reduced Capital Expenditure
Reduced Capital Expenditure (CapEx) allows organizations to avoid large upfront investments in hardware and instead pay for IT resources as an operational expense. This directly addresses the startup's need to minimize upfront costs.
Why the other options are wrong
- B. High Availability ensures continuous operation but doesn't directly relate to upfront cost reduction.
- C. Global Reach enables deployment across multiple geographic regions but isn't about cost structure.
- D. Elasticity allows resources to scale up or down based on demand, which impacts ongoing costs but not initial capital outlay.
Reduced Capital Expenditure
The cloud computing benefit of minimizing or eliminating large upfront costs for IT infrastructure by paying for resources on a consumption model.
- Avoids purchasing physical hardware
- Shifts costs from CapEx to OpEx
- Enables pay-as-you-go pricing
Memory trick: Cloud saves cash, makes you fast, and reaches far.