Microsoft Certified: Azure Fundamentals (AZ-900) Practice Exam

What is the advantage of moving your company's infrastructure to Azure by using a public cloud deployment model?

1. Legacy applications are easier to support

2. There are no operational expenditure (OpEx) costs

3. The company has complete control of resources that are used by the OS

4. There are no capital expenditure (CapEx) costs

The correct answer is: There are no capital expenditure (CapEx) costs

Moving a company's infrastructure to Azure using a public cloud deployment model provides several advantages, and one of the key benefits is the reduction or elimination of capital expenditure (CapEx) costs. In a traditional on-premises infrastructure, companies typically incur significant upfront costs to purchase hardware, networking equipment, and other infrastructure components. These expenses are classified as capital expenditures. However, when utilizing a public cloud like Azure, businesses can shift to an operational expenditure (OpEx) model, where they pay for only the resources they consume on a subscription basis. This allows for more flexibility, as companies don't need to invest heavily upfront but can scale their infrastructure and pay as they go, aligning costs more closely with their actual usage and operational needs. This transition not only frees up capital for other business initiatives but also allows organizations to avoid the risks associated with large capital investments in technology that may become outdated. Thus, the model supports a more agile approach to managing IT resources.