After moving to the cloud, a company's finance team no longer approves large hardware purchases once a year. Instead, the IT bill changes every month with usage. What new responsibility does this create for finance?
Choose one.
OpEx cloud spending is variable: it rises and falls with consumption, so cost control becomes a continuous activity rather than an annual approval.
The shift to OpEx removes the big up-front purchase but makes the bill variable. Anyone can create resources on demand, so spend can grow quickly between reviews. Finance therefore needs ongoing visibility and forecasting. Depreciation, purchase approvals and refresh contracts all belong to the CapEx model the company has left.
- Note that the bill now changes with usage each month.
- Recall that variable spend needs ongoing monitoring and forecasting.
- Reject options that describe owning and buying hardware.
- Choose continuous tracking and forecasting.
Exam tip: OpEx is flexible but variable: cost control moves from one annual decision to continuous tracking.
Controlling Cloud Costs: CapEx vs OpEx, FinOps, Resource Hierarchy, Quotas and Budgets (Cloud Digital Leader) — the lesson that teaches this.