Microsoft Azure Fundamentals AZ-900 Practice Question
Your company is considering migrating their on-premises data center to the cloud. The Chief Financial Officer (CFO) is particularly interested in how the cloud could impact the company's operating costs. Which billing approach that aligns with the cloud consumption-based model should you explain to the CFO?
One-time payment for perpetual use of software hosted in the cloud.
Pay-as-you-go, where costs are dependent on the amount of services and resources consumed.
Pay-in-advance, with a discount applied for committing to a set amount of resources for the year.
Fixed monthly fee, where the company pays a predetermined fee each month for a package of services.
In the consumption-based model, costs are directly correlated with the amount of cloud resources used. There is no need for capital expenditure on hardware, and costs can be scaled up or down based on actual usage, aligning with the 'pay-as-you-go' structure. This is beneficial for companies as it offers flexibility and scalability without significant upfront costs. The 'pay-in-advance' model would not be a consumption-based approach since costs are not directly tied to usage. Fixed monthly fees and one-time payments are also not reflective of the consumption-based model as they do not vary with usage but are predetermined costs.
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Microsoft Azure Fundamentals AZ-900
Cloud Concepts
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