C. Adapting to a pay-as-you-go cloud expenditure model
When migrating from on-premises to the cloud, an organization shifts from a capital expenditure (CapEx) model, where they purchase and maintain infrastructure, to an operational expenditure (OpEx) model, where they pay for cloud resources on a pay-as-you-go basis. This requires:
- Financial adaptation: Tracking and optimizing cloud costs based on usage.
- Budget planning: Aligning expenditures with business needs to avoid over- or under-provisioning.
- Monitoring: Using tools to track resource consumption and prevent unexpected cost spikes
C. Adapting to a pay-as-you-go cloud expenditure model
Correct. Moving to the cloud often involves changing how IT expenditures are accounted for from a capital expenditure model (CapEx) to an operational expenditure model (OpEx). In the cloud, organizations typically pay for services as they use them, which requires adapting budgeting and financial management practices to a pay-as-you-go model.
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