Microsoft 365 FundamentalsDescribe cloud conceptsEasy
A small startup company is considering adopting cloud services for its new product development. They want to minimize upfront costs for hardware and infrastructure, and instead pay for resources as they use them. Which cloud benefit directly addresses this financial model?
- AElasticity
- BPay-as-you-go pricing
- CHigh Availability
- DGlobal reach
Show answer & explanationAnswer & explanation
Correct answer: B. Pay-as-you-go pricing
Pay-as-you-go pricing, also known as consumption-based pricing, allows organizations to pay only for the cloud resources they consume, eliminating the need for large upfront capital expenditures on hardware.
Why the other options are wrong
- A. Elasticity refers to the ability to scale resources up or down, which is a performance and efficiency benefit, not a direct financial model.
- C. High availability ensures services remain operational, but doesn't directly address the cost model of paying for usage.
- D. Global reach allows services to be deployed worldwide, which is not primarily a financial model benefit.
Pay-as-you-go Pricing
A cloud billing model where customers pay only for the resources they actually consume, without large upfront investments.
- Eliminates capital expenditure (CapEx)
- Converts CapEx to operational expenditure (OpEx)
- Allows for cost predictability based on usage
Memory trick: Paying only for what you 'GO' through saves big dough.