A. Costs will primarily shift from CapEx to OpEx.
Here’s an explanation:
CapEx (Capital Expenditures) refers to upfront investments in physical infrastructure like servers, storage, and data centers. In an on-premises environment, organizations often invest in these capital expenditures.
OpEx (Operating Expenses) refers to ongoing costs associated with running services, such as paying for cloud resources on a usage-based model (e.g., pay-as-you-go).
When an organization migrates to the cloud, it typically shifts from owning and maintaining physical infrastructure (CapEx) to paying for cloud resources as needed (OpEx). This shift enables more flexibility, as costs are incurred based on usage rather than large upfront investments.
Why the other options are incorrect:
B. Costs will primarily shift from OpEx to CapEx: This is incorrect. With cloud migration, the opposite happens—organizations move from a model where they manage infrastructure costs upfront (CapEx) to paying for usage (OpEx).
C. Cost management will stay the same, but the total cost of ownership (TCO) will be lower: While TCO can be lower due to the efficiency of cloud resources, cost management typically changes because the nature of the costs shifts from CapEx to OpEx. Cloud services often introduce new cost management practices.
D. Cost management will stay the same, but the total cost of ownership (TCO) will be higher: This is also unlikely. Cloud migration typically reduces TCO, not increases it, due to savings in hardware, maintenance, and operational efficiencies.
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joshnort
12 hours, 15 minutes agojoshnort
12 hours, 13 minutes ago