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Moving from on-premises to cloud typically shifts spending from

  • A.capital to operating expenditure
  • B.operating to capital expenditure instead
  • C.fixed to variable staffing costs
  • D.software costs to hardware costs

Answer: A

Correct answer: capital to operating expenditure

On-premises infrastructure is bought up front, depreciated and owned; cloud capacity is rented and expensed monthly. That shift is the financial argument for the cloud: no large outlay before the first user arrives, and cost that follows actual usage. It also has a consequence often overlooked - the spending becomes continuous and visible, so it needs governing rather than merely approving once.

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