Exam CLO-002 topic 1 question 3 discussion

Pay-As-You-Go (PAYG) is a pricing structure that allows users to pay solely for the resources or services they consume, eliminating the need for a fixed contract or advance payment. This approach is commonly adopted in sectors such as cloud computing, mobile services, utilities, and financial transactions.

Pay-As-You-Go (PAYG) is a pricing model commonly used in cloud computing and other services where users are charged based on their actual usage of resources, rather than a fixed fee. This model allows for greater flexibility and cost efficiency, as users only pay for what they use.

Capital Expenditures (CapEx) - Are purchases of significant goods or services that will be used to improve a company’s performance in the future. - They include the cost of fixed assets and the acquisition of intangible assets such as patents and other forms of technology. Operating Expenses (OpEx) - Operating expenses are the costs that a company incurs for running its day-to-day operations. - As such, they don't apply to any costs related to the production of goods and services. https://www.investopedia.com/ask/answers/112814/whats-difference-between-capital-expenditures-capex-and-operational-expenditures-opex.asp Pay-as-you-go (PAYG) It is a payment method for cloud computing that charges based on usage. https://www.techtarget.com/searchstorage/definition/pay-as-you-go-cloud-computing-PAYG-cloud-computing

Explanation of Correct Answer The correct answer is Pay-as-you-go. This cloud characteristic allows users to pay only for the resources and services they consume, which helps transform the business model from a typical capital expenditure model, where significant upfront investments are required, to an operating expenditure model, where costs are incurred on an ongoing basis and tied to actual usage. By allowing businesses to avoid large upfront investments and instead pay for what they use, pay-as-you-go pricing can help reduce costs and provide more financial flexibility. Source: https://examlab.co/comptia/cloud-essentials-clo-002