Cloud ConceptsQuestion 23 of 100
Which statement about capital expenditure (CapEx) is correct?
a.It is a recurring monthly usage charge
b.It only applies to cloud subscriptions
c.It is a large upfront investment in physical assets like servers and datacenters
d.It eliminates the need to own hardware
Explanation
CapEx is spending on tangible assets, such as buying servers or building a datacenter, that are used over many years. Traditional on-premises IT relies heavily on CapEx. Cloud computing reduces CapEx by shifting toward pay-as-you-go OpEx.
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