AZ-900 Exam - Question 58

Question

HOTSPOT -For each of the following statements, select Yes if the statement is true. Otherwise, select No. NOTE: Each correct selection is worth one point. Hot Area:.

Examice · Accepted Answer

One of the major changes that you will face when you move from on-premises cloud to the public cloud is the switch from capital expenditure (buying hardware) to operating expenditure (paying for service as you use it).

Box 1: No -

With the pay-as-go model, you pay for services as you use them. This is Opex (Operational Expenditure), not CapEx (Captial Expenditure). CapEx is where you pay for something upfront. For example, buying a new physical server.

Box 2: No -

Paying for electricity for your own datacenter will be classed as CapEx, not OpEx.

Box 3: Yes -

Deploying your own datacenter is an example of CapEx. This is because you need to purchase all the infrastructure upfront before you can use it.

Reference:

https://docs.microsoft.com/en-us/azure/architecture/cloud-adoption/appendix/azure-scaffold

alanlzp1404 · Answer

Box 2 should be OpEx as Paying Electricity is operating costs.

DrcCZ · Answer

Correct answer for 2nd question (electricity in own Datacenter) is OpEx.
Pretty sure about that as only mistake highlighted in my exam score was in area Azure Core Services, which is not the category for this question. And I put there Opex.

slayersirius · Answer

As a previous accountant, please trust me: box 2 is 100% opex
So the answer should be NYY

Yecine11y · Answer

Paying electricity for your data center is typically considered an operating expense (OPEX) rather than a capital expense (CAPEX). This is because electricity costs are ongoing and directly related to the day-to-day operation of the data center, rather than an investment in a physical asset with long-term value. OPEX includes costs incurred in the normal course of business to generate revenue, while CAPEX involves purchasing assets with long-term benefits.

ZForceX · Answer

Electricity = OpEx. You pay what you use and how much you use

ADR7 · Answer

Correct answers are No, Yes & Yes.

Yomzie · Answer

In a cloud environment, paying electricity costs for your own datacenter would typically be classified as a capital expenditure (CapEx).

Capital expenditures are investments in assets that provide long-term benefits to the business, such as purchasing or building infrastructure like datacenters. When you invest in building or owning a datacenter, you're essentially making a long-term investment in physical assets. The costs associated with setting up and maintaining the datacenter, including electricity costs, are considered capital expenses.

On the other hand, operating expenses (OpEx) are ongoing expenses required for the day-to-day operation of a business, such as utilities, salaries, and maintenance costs. While electricity costs for running servers and other equipment in a cloud environment would typically be classified as operating expenses, the costs associated with the initial setup and ongoing operation of the datacenter infrastructure itself would be considered capital expenditures.

Alonsochaves · Answer

I think paying electricity for on prem is CapEx. When migrating to Azure you are reducing or eliminating CapEX and turning to OpEx. So paying for it is not OpEx.

odairm23 · Answer

A eletricidade do seu data center é capex (pois faz parte da sua infra); então a Resp Correta é Não! 
NNS

Mole857 · Answer

Electricity in your own data  centre is always OpEx, never CapEx as it is a reocurring and running expense, not a one off expense.

BJS78 · Answer

Whoever still has doubts. let's make it simple:
CAPEX = one-timer (usually) and act as investment. (you also will calculate depreciation over time in you accounting books)
OPEX = continuous operational cost. Comes periodically.

varinder82 · Answer

Correct Answer : N Y Y

EhCloudGrrrU · Answer

Direct from MS:

"Paying electricity for a data center is an example of an operational expense (OpEx). Operational expenses refer to the ongoing costs incurred in the day-to-day operations of a business or organization."

glil · Answer

Box 2 should be OpEx as Paying Electricity is operating costs.

BraveSirRobin · Answer

Paying the electricity bill is OpEx. The cost varies over time and you pay as you use it, after you use it.

NAZJO · Answer

Paying for electricity is an OpEx cost. CapEx refers to upfront costs for assets and electricity is not an asset that can be owned.

tomeq82 · Answer

Other sources cites electricity in DC as OpEx.

AZ-900 Exam - Question 58

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