Microsoft 365 FundamentalsDescribe cloud conceptsMedium
A research institution is running complex simulations that require massive amounts of computing power for short, unpredictable periods. They want a solution that allows them to provision and de-provision resources quickly without long-term commitments, and only pay for the time they use the resources. Which cloud concept is specifically designed to meet these dynamic and cost-efficient demands?
- AFixed-cost licensing
- BOperational Expenditure (OpEx)
- CCapital Expenditure (CapEx)
- DSubscription model
Show answer & explanationAnswer & explanation
Correct answer: B. Operational Expenditure (OpEx)
Operational Expenditure (OpEx) aligns with the cloud's pay-as-you-go model, allowing the institution to consume resources as needed without large upfront investments, and only pay for what they use. This is ideal for unpredictable, short-term, high-demand workloads.
Why the other options are wrong
- A. Fixed-cost licensing implies a consistent cost regardless of usage, which is not suitable for unpredictable demand.
- C. CapEx involves large upfront investments in physical assets, which the institution wants to avoid.
- D. A subscription model usually involves recurring payments for a set period or amount of resources, which might not be cost-efficient for 'short, unpredictable periods'.
Operational Expenditure (OpEx) in Cloud
Spending money on services or products as needed and being billed for them immediately, often associated with cloud computing's pay-as-you-go model.
- No large upfront costs.
- Pay for what you use.
- Can deduct expenses in the same tax year.
Memory trick: OpEx: Operate and Pay.