Exam: AZ-900: Microsoft Azure Fundamentals 0 Likes

When planning for the costing aspect for these resources, is there a (AZ-900)

Updated on 05/24/2024

Your company is planning on using Azure for hosting Infrastructure level resources such as Azure Virtual Machines.

When planning for the costing aspect for these resources, is there a flexibility offered when it comes to Capital and Operational Expenditure.

A) Yes.
B) No.


Solution

Correct answer: A) Yes.
Azure provides flexibility in terms of both capital expenditure (CapEx) and operational expenditure (OpEx) when it comes to costing for infrastructure resources such as Azure Virtual Machines.
Operational Expenditure (OpEx): With Azure, you can pay for resources on a pay-as-you-go basis. This is considered operational expenditure, where you are billed based on your actual usage. This model provides flexibility, scalability, and the ability to adjust your resources as needed without large upfront costs.
Capital Expenditure (CapEx): Azure also offers options for organizations that prefer a capital expenditure model. This includes reserved instances, where you commit to a one or three-year term and receive a discount compared to pay-as-you-go pricing. This approach allows for some predictability in costs and can be suitable for scenarios where there's a long-term commitment to specific resources.
The ability to choose between OpEx and CapEx models allows organizations to align their cloud spending with their financial preferences and business strategies. It also provides the flexibility to adjust the approach based on changing requirements and priorities.

Category: Azure management and governance

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