az-900 question 58 discussion

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Question 58 Topic 2

HOTSPOT
For each of the following statements, select Yes if the statement is true. Otherwise, select No.
NOTE: Each correct selection is worth one point.
Hot Area:

Answer:


Explanation:
One of the major changes that you will face when you move from on-premises cloud to the public cloud is the switch from
capital expenditure (buying hardware) to operating expenditure (paying for service as you use it).
Box 1: No
With the pay-as-go model, you pay for services as you use them. This is Opex (Operational Expenditure), not CapEx
(Captial Expenditure). CapEx is where you pay for something upfront. For example, buying a new physical server.
Box 2: No
Paying for electricity for your own datacenter will be classed as CapEx, not OpEx.
Box 3: Yes
Deploying your own datacenter is an example of CapEx. This is because you need to purchase all the infrastructure upfront
before you can use it.
Reference:
https://docs.microsoft.com/en-us/azure/architecture/cloud-adoption/appendix/azure-scaffold

Discussions
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cshocks
1 year, 6 months ago

OpEx as its an operational cost not an upfront cost. Dont pay for Electricity upfront- Electricity is not an asset. The company cannot own it. It is seen as an OpEx