A company is planning to migrate their applications to Azure. Instead of paying upfront capital expenses (CapEx) for physical servers and hardware infrastructure, they want to pay for resources as they consume them, treating the cost as an operational expense (OpEx). Which characteristic of cloud computing does this represent?

Direct Answer (Verified)Reviewed by Sunny (Senior Cloud Engineer)

Correct Answer: Consumption-based model

Cloud computing operates on a consumption-based model, meaning users pay only for the resources they use. This model transitions spending from Capital Expenditure (CapEx - upfront ...

๐Ÿ“‹Part of Microsoft Certified: Azure Fundamentals (AZ-900) ยท Azure Certification Practice
Real Exam ScenarioCloud Concepts (Azure)

A company is planning to migrate their applications to Azure. Instead of paying upfront capital expenses (CapEx) for physical servers and hardware infrastructure, they want to pay for resources as they consume them, treating the cost as an operational expense (OpEx). Which characteristic of cloud computing does this represent?

โœ“ Correct Answer & ExplanationCloud Concepts (Azure)

Correct Answer

Consumption-based model

Why This Answer Is Correct

Cloud computing operates on a consumption-based model, meaning users pay only for the resources they use. This model transitions spending from Capital Expenditure (CapEx - upfront cost for physical hardware) to Operational Expenditure (OpEx - ongoing cost for running services).

๐Ÿ“š What This Question Tests

This question evaluates your knowledge of Cloud Concepts (Azure) โ€” a core concept tested in Microsoft Certified: Azure Fundamentals (AZ-900). Understanding Cloud Concepts (Azure) is essential for designing scalable, secure, and cost-effective cloud architectures. Mastery of this topic will help you answer scenario-based questions confidently on exam day.