Test Your Knowledge of IT Infrastructure Expenses with the Consumption-Based Mod...
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Questions and Answers

What is the main difference between CapEx and OpEx in IT infrastructure?

  • CapEx is a one-time expenditure on services or products over time, while OpEx is a one-time, up-front expenditure to purchase or secure tangible resources.
  • CapEx is a one-time expenditure on services or products over time, while OpEx is spending money on services or products over time.
  • CapEx is spending money on services or products over time, while OpEx is a one-time, up-front expenditure to purchase or secure tangible resources.
  • CapEx is a one-time, up-front expenditure to purchase or secure tangible resources, while OpEx is spending money on services or products over time. (correct)

What is the advantage of the consumption-based model in cloud computing?

  • You pay for the IT resources you use and don't have to estimate future resource needs.
  • You don't have to worry about getting the resource needs just right. (correct)
  • You pay for the extra capacity that the cloud provider has on hand.
  • You only pay for the physical infrastructure of the datacenter.

What is cloud computing?

  • The delivery of computing services over the internet by using a one-time expenditure on services or products over time.
  • The delivery of computing services over the internet by using a one-time, up-front expenditure to purchase or secure tangible resources.
  • The delivery of computing services over the internet by using a spending money on services or products over time.
  • The delivery of computing services over the internet by using a pay-as-you-go pricing model. (correct)

What type of expenditure is associated with cloud computing?

<p>Operational expenditure (A)</p> Signup and view all the answers

What is the benefit of the consumption-based model in cloud computing?

<p>You pay for the IT resources you use (C)</p> Signup and view all the answers

What is the difference between cloud computing and maintaining CPUs and storage in your own datacenter?

<p>You pay only for what you use with cloud computing (A)</p> Signup and view all the answers

Study Notes

CapEx vs OpEx

  • Capital Expenditure (CapEx) involves upfront costs for hardware, software, and infrastructure, treated as assets on a company's balance sheet
  • Operational Expenditure (OpEx) involves ongoing expenses for services, maintenance, and support, treated as expenses on the income statement

Cloud Computing Basics

  • Cloud computing is a model for delivering IT services over the internet, on-demand and pay-per-use
  • It enables on-demand access to a shared pool of computing resources, such as servers, storage, databases, software, and applications

Consumption-Based Model

  • The consumption-based model in cloud computing allows users to pay only for the resources they use, reducing upfront costs and scaling up or down as needed
  • Advantage: provides flexibility, scalability, and cost savings
  • Benefit: eliminates the need for upfront capital expenditures and reduces the need for ongoing maintenance and support

Cloud Computing vs On-Premise Infrastructure

  • Cloud computing differs from maintaining CPUs and storage in your own datacenter, as it provides a scalable, on-demand, and pay-per-use model
  • Cloud computing reduces the need for upfront capital expenditures and ongoing maintenance and support costs associated with traditional on-premise infrastructure

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Take the "Consumption-Based Model Quiz" to test your knowledge of IT infrastructure expenses! Learn about the differences between capital expenditure (CapEx) and operational expenditure (OpEx) and how the consumption-based model works. Test your understanding with this informative quiz.

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