Discussion
Consider the following statements about the economics of cloud adoption.
1. Capital expenditure is replaced largely by operating expenditure.
2. Capacity no longer has to be provisioned for the annual peak.
3. Cloud is always cheaper than running your own hardware.
Answer: B
Correct answer: 1 and 2 only
Statements 1 and 2 are correct, and the second is the more important: capacity no longer has to be bought for the annual peak and left idle the rest of the year. Statement 3 is a claim no analysis supports - a steady, predictable, heavily utilised workload is frequently cheaper on owned hardware, and the cloud’s advantage is greatest where demand is variable or uncertain.
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