Google Cloud Digital Leader — All Questions

A company moves its workloads from an on-premises data center to Google Cloud and now pays only for the compute it consumes each month, with no upfront hardware purchase. Which financial shift best describes this change?

• a.Shifting from operating expenses (OpEx) to capital expenses (CapEx)
• b.Shifting from capital expenses (CapEx) to operating expenses (OpEx)✓
• c.Eliminating both CapEx and OpEx entirely
• d.Converting all costs into one-time depreciation charges

On-premises hardware requires large upfront purchases, which are capital expenses (CapEx). Cloud usage is billed as you consume resources, turning spending into ongoing operating expenses (OpEx). This pay-as-you-go model is a core cloud benefit, so 'CapEx to OpEx' is correct. Cloud does not eliminate all cost, nor is it a one-time depreciation charge.

Which statement best defines digital transformation in the context of adopting cloud technology?

• a.Buying newer physical servers to replace aging hardware in a private data center
• b.Migrating email from one on-premises server to another for redundancy
• c.Using digital technologies to create new, or change existing, business processes and customer experiences✓
• d.Reducing the number of employees who manage IT infrastructure

Digital transformation means using digital and cloud technologies to fundamentally change how a business operates and delivers value to customers. Simply buying new servers or moving email between servers is a technical upgrade, not transformation. Headcount reduction may be an outcome but is not the definition. The focus is on changing processes and customer experiences.