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CLF-C02 practice question: Cloud economics (4 of 4)

Cloud Concepts A free question from our original CLF-C02 practice exam. Try it, then open the answer to see why each option is right or wrong.

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A start-up's board does not want to tie up cash in servers and data center contracts before it knows how many customers it will have.

The company also wants its cloud costs to rise and fall with its usage each month.

Which cloud benefit meets this need?

Choose one answer.

  1. A. Trading fixed expense for variable expense, paying for IT as it is used
  2. B. Stopping guessing about capacity, by scaling resources to match demand
  3. C. Going global in minutes, by deploying applications in several Regions quickly
  4. D. Increasing speed and agility, by provisioning new resources in minutes
Show the answer and explanation

Answer: A

  • A. Right: Correct. Trading fixed expense for variable expense means paying for resources as they are used, rather than buying servers up front. Costs then follow usage from month to month. Learn more: Six advantages of cloud computing (opens in a new tab)
  • B. Wrong: Stopping guessing about capacity is about matching resources to demand instead of forecasting it. It does not describe replacing upfront purchases with usage-based spending.
  • C. Wrong: Going global in minutes is about deploying applications in many Regions quickly, for latency and reach. It does not address up-front spending or costs that follow usage.
  • D. Wrong: Speed and agility is about provisioning resources quickly so projects move faster. It does not describe the shift from fixed purchases to usage-based costs.

Explanation

The benefit is trading fixed expense for variable expense. The start-up avoids large upfront purchases and pays for IT as it uses it, so costs follow usage. The other three are real cloud benefits, but each addresses speed, reach or capacity planning instead.

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