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Answer: Lower initial costs but potentially higher operational costs depending on usage
In cloud computing, adopting a variable cost model means that expenses are based on consumption rather than fixed upfront costs. This can lead to lower initial costs but potentially higher operational costs if usage increases, providing scalability and flexibility compared to the fixed costs associated with traditional IT environments.
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What is the economic impact of adopting a variable cost model in cloud computing compared to fixed costs in traditional IT environments?
A
Higher initial costs but lower operational costs
B
Lower initial costs but potentially higher operational costs depending on usage
C
Fixed costs remain unchanged but operational flexibility increases
D
Operational costs are fixed and predictable
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