Migrating 1,000 Virtual Machines to Azure: Expenditure Model Identification

Identifying the Expenditure Model for Migrating 1,000 Virtual Machines to Azure

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Question

You have 1,000 virtual machines hosted on the Hyper-V hosts in a data center.

You plan to migrate all the virtual machines to an Azure pay-as-you-go subscription.

You need to identify which expenditure model to use for the planned Azure solution.

Which expenditure model should you identify?

Answers

Explanations

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A. B. C. D.

A

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). This switch also requires more careful management of your costs. The benefit of the cloud is that you can fundamentally and positively affect the cost of a service you use by merely shutting down or resizing it when it's not needed.

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

The correct answer is A. Operational.

Explanation:

There are different types of expenditure models available in Azure, such as capital expenditure (CapEx) and operational expenditure (OpEx).

Capital expenditure (CapEx) refers to the upfront investment in physical hardware or infrastructure that is depreciated over a period of time. This model requires a significant upfront investment, and the cost is usually amortized over several years. The CapEx model is best suited for organizations that have predictable workloads and can accurately forecast their capacity needs.

Operational expenditure (OpEx), on the other hand, refers to the ongoing expenses incurred for using services or resources that are paid on a pay-as-you-go basis. This model is ideal for organizations that have fluctuating workloads and need to scale their resources up or down quickly. With the OpEx model, organizations can avoid upfront costs and pay only for the resources they consume.

In this scenario, the question mentions that the organization plans to migrate its 1,000 virtual machines to an Azure pay-as-you-go subscription. This suggests that the organization wants to avoid upfront costs and pay only for the resources it consumes. Therefore, the best expenditure model for this scenario would be operational expenditure (OpEx).

Option A is the correct answer: operational expenditure. Option B (elastic) is not an expenditure model but rather a term used to describe the ability of resources to scale up or down based on demand. Option C (capital) involves upfront investment in physical hardware or infrastructure, which is not suitable for this scenario. Option D (scalable) is also not an expenditure model, but rather a term used to describe the ability of resources to scale up or down based on demand.