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AZ-900 · Domain 1

Describe cloud concepts practice questions

Describe cloud concepts is worth 28% of the AZ-900 exam — the lightest of the 3 domains. Cloud computing fundamentals: cloud models, the benefits of cloud services, and the IaaS/PaaS/SaaS service types. Official weighting 25–30%. 6 fully worked examples are further down this page, answers included.

Exam weight
28%
the lightest of the 3 domains
Questions
60
across 3 topics
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Explanations
Every option
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6 sample Describe cloud concepts questions, fully explained

Questions from the AZ-900 bank mapped to domain 1, with the answer key and the reasoning behind every option. None of them repeat the examples on the main AZ-900 practice page.

Question 1Describe cloud concepts

In the consumption-based model, what does an organization pay for?

Choose one.

  • a
    A fixed annual fee regardless of usage

    A flat fixed fee is not consumption-based; consumption billing varies with what you use.

  • b
    Only the resources it actually uses, for as long as it uses them Correct

    The consumption-based model bills strictly for resources consumed, with no charge for idle capacity.

  • c
    The full capacity of a datacenter bought up front

    Buying full capacity up front is a capital expense, the opposite of paying only for what you consume.

  • d
    Hardware it owns and depreciates over several years

    Owning and depreciating hardware describes on-premises CapEx, not the consumption-based cloud model.

The concept

The consumption-based model charges only for resources actually used.

Why that’s the answer

By definition you pay for what you consume and for as long as you consume it, with no up-front purchase and no charge for idle capacity. A fixed fee, buying full capacity, and owning depreciating hardware all describe non-consumption or on-premises models.

How to reason it out
  1. Recall the phrase pay only for what you use.
  2. Match it to paying for actual usage.
  3. Reject fixed fees and up-front hardware purchases.

Exam tip: The consumption-based model means paying only for the resources you use, with no charge for idle capacity.

What Is Cloud Computing? An Azure AZ-900 Guide — the lesson that teaches this.

Question 2Describe cloud concepts

An online shop adds extra Azure capacity for its busy December period and removes it in January, paying only for the weeks it used the extra capacity. Which cloud concept does this illustrate?

Choose one.

  • a
    The shared responsibility model

    Shared responsibility is about who secures which layer, not about paying for capacity you use.

  • b
    A hybrid cloud deployment

    Hybrid describes connecting public and private clouds, not paying only for temporary capacity.

  • c
    A capital expense

    A capital expense is an up-front purchase of owned assets, the opposite of paying only for capacity used briefly.

  • d
    The consumption-based model Correct

    Paying only for the capacity used during the busy period is the pay-as-you-go, consumption-based model.

The concept

Paying only for temporary, used capacity is consumption-based pricing.

Why that’s the answer

Adding capacity for a peak and paying only for those weeks is pay-as-you-go, the consumption-based model. Shared responsibility is a security split, hybrid is a deployment mix, and CapEx is an up-front purchase, so none fit a scenario about paying for used capacity.

How to reason it out
  1. Spot the trigger: paying only for the weeks of extra capacity.
  2. Map paying for what you use to the consumption-based model.
  3. Eliminate security, deployment, and CapEx options.

Exam tip: Scaling spend up and down with real demand and paying only for what you use signals the consumption-based model.

What Is Cloud Computing? An Azure AZ-900 Guide — the lesson that teaches this.

Question 3Describe cloud concepts

A company spends a large amount up front to buy servers and networking gear for its own datacenter. How is this spending classified?

Choose one.

  • a
    An operating expense (OpEx)

    OpEx is an ongoing pay-as-you-go cost for a service, not a one-time hardware purchase.

  • b
    A consumption-based charge

    Consumption-based charges are billed for resources used over time, not paid up front for owned hardware.

  • c
    A subscription fee

    A subscription is a recurring service charge, whereas buying hardware outright is a one-time capital purchase.

  • d
    A capital expense (CapEx) Correct

    Buying physical assets you own up front is a capital expense.

The concept

Buying owned datacenter hardware up front is a capital expense.

Why that’s the answer

A capital expense is a large up-front purchase of assets you own, such as servers and networking gear, which matches the scenario. OpEx, consumption charges, and subscriptions are all ongoing, usage-based, or recurring service costs, not up-front asset purchases.

How to reason it out
  1. Note the key detail: a large up-front purchase of owned hardware.
  2. Match up-front asset ownership to CapEx.
  3. Eliminate the ongoing-cost options (OpEx, consumption, subscription).

Exam tip: Buying and owning datacenter hardware up front is a capital expense (CapEx).

What Is Cloud Computing? An Azure AZ-900 Guide — the lesson that teaches this.

Question 4Describe cloud concepts

A business receives a monthly bill for the Azure virtual machines and storage it consumed, with no hardware to own. How is this spending classified?

Choose one.

  • a
    A capital expense (CapEx)

    CapEx is an up-front purchase of owned assets, but here nothing is bought or owned.

  • b
    A depreciating asset

    Depreciation applies to owned assets like on-premises servers, not to a monthly service you consume.

  • c
    An operating expense (OpEx) Correct

    An ongoing pay-as-you-go cost for a consumed service is an operating expense.

  • d
    A one-time purchase

    Monthly billing for consumed resources is recurring, not a single up-front purchase.

The concept

Paying monthly for consumed cloud resources is an operating expense.

Why that’s the answer

An operating expense is an ongoing cost for a service you consume, billed as you go, which exactly matches a monthly Azure bill with no hardware to own. CapEx, depreciating assets, and one-time purchases all involve buying and owning assets, which is not happening here.

How to reason it out
  1. Identify the pattern: recurring bill for consumed resources, nothing owned.
  2. Match ongoing service cost to OpEx.
  3. Reject options tied to owning or depreciating assets.

Exam tip: Paying as you go for cloud resources you consumed is an operating expense (OpEx).

What Is Cloud Computing? An Azure AZ-900 Guide — the lesson that teaches this.

Question 5Describe cloud concepts

When an organization moves from running its own on-premises datacenter to Microsoft Azure, how does its spending typically change?

Choose one.

  • a
    From an operating expense (OpEx) to a capital expense (CapEx)

    This is reversed; moving to the cloud shifts spending toward OpEx, not toward buying owned hardware.

  • b
    From a capital expense (CapEx) to an operating expense (OpEx) Correct

    The cloud replaces up-front hardware purchases (CapEx) with ongoing pay-as-you-go costs (OpEx).

  • c
    From a capital expense to another capital expense

    The cloud does not require buying owned hardware, so the spending does not remain a capital expense.

  • d
    Spending stays a fixed annual license with no change

    Cloud billing is consumption-based, not a fixed unchanging license, so this is incorrect.

The concept

Adopting the cloud shifts spending from CapEx to OpEx.

Why that’s the answer

On-premises requires large up-front hardware purchases (CapEx), while the cloud charges ongoing pay-as-you-go costs (OpEx), so the shift is CapEx to OpEx. The reversed and unchanged options contradict how consumption-based cloud billing works.

How to reason it out
  1. Classify on-premises spending as CapEx.
  2. Classify cloud spending as OpEx.
  3. Conclude the move is a CapEx-to-OpEx shift.

Exam tip: Moving to the cloud generally shifts spending from a capital expense to an operating expense.

What Is Cloud Computing? An Azure AZ-900 Guide — the lesson that teaches this.

Question 6Describe cloud concepts

Under the shared responsibility model, who is always responsible for securing the physical datacenters and physical hosts?

Choose one.

  • a
    The cloud provider Correct

    The provider always secures the physical datacenters, hosts, and network; customers can never manage these.

  • b
    The customer

    Customers never manage the physical facilities; that responsibility always belongs to the provider.

  • c
    The customer, only when using IaaS

    Even with IaaS the provider secures the physical layer; the customer never owns physical datacenter security.

  • d
    It is split evenly between provider and customer

    Physical datacenter security is not split; it always belongs entirely to the provider.

The concept

The provider always secures the physical datacenter and hosts.

Why that’s the answer

In the shared responsibility model, the physical datacenters, hosts, and network are always the provider's responsibility regardless of service type. The customer never manages the physical layer, so the options assigning it to the customer or splitting it are wrong.

How to reason it out
  1. Recall the always-provider responsibilities: physical datacenter, hosts, network.
  2. Assign physical security to the provider.
  3. Eliminate any option giving the customer physical responsibility.

Exam tip: The cloud provider always secures the physical datacenters and hosts, no matter the service type.

What Is Cloud Computing? An Azure AZ-900 Guide — the lesson that teaches this.

What AZ-900 domain 1 tests, topic by topic

The official exam guide breaks Describe cloud concepts into 3 topics. The question bank follows the same split, so a weak topic shows up as a cluster of misses you can go back and read.

Published AZ-900 practice questions per topic in Describe cloud concepts
TopicWhat it coversQuestions
Describe cloud computingSkills outline section (AZ-900, as of July 20, 2026). Define cloud computing; the shared responsibility model; cloud models — public, private, and hybrid — and appropriate use cases for each; the consumption-based model; comparing cloud pricing models; serverless.20
Describe the benefits of using cloud servicesSkills outline section (AZ-900, as of July 20, 2026). The benefits of high availability and scalability in the cloud; the benefits of reliability and predictability; the benefits of security and governance; the benefits of manageability in the cloud.20
Describe cloud service typesSkills outline section (AZ-900, as of July 20, 2026). Infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS); identifying appropriate use cases for each cloud service type.20
Total60

Revise Describe cloud concepts before you drill it

Other AZ-900 domains

Describe cloud concepts: your questions

Describe cloud concepts is domain 1 of the AZ-900 exam guide and carries 28% of the scored content — the lightest of the 3 domains. On a 45-question paper that works out to roughly 13 questions, though Microsoft Azure does not publish an exact per-domain count and individual exam forms vary.

Source

The domain weight and topic list on this page come from the official AZ-900 exam guide.