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Questions and Answers
Which type of investment involves purchasing assets upfront?
Which investment model allows you to pay for resources as you use them?
Which investment type minimizes the risk of overcommitting resources and stifling innovation?
Which model involves purchasing assets upfront and depreciating them over time?
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Which model is commonly used in the cloud and involves paying for resources and services as you use them?
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Which model enables organizations to scale their resources according to their actual needs, resulting in cost efficiency?
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Study Notes
Investment Models
- Capex (Capital Expenditure) Model: Involves purchasing assets upfront, depreciating them over time, and is a traditional investment model.
Alternative to Capex
- Opex (Operational Expenditure) Model: Allows users to pay for resources as they use them, minimizing the risk of overcommitting resources and stifling innovation.
Cloud Computing
- Pay-as-you-go Model: Commonly used in the cloud, involves paying for resources and services as they are used, enabling organizations to scale their resources according to their actual needs, resulting in cost efficiency.
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Description
Test your knowledge on the differences between capital expenditure (CapEx) and operational expenditure (OpEx) and gain an understanding of the consumption-based model. Identify key assets involved in CapEx and learn how it impacts business expenses.
