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ACCA Applied Knowledge · Business and Technology · Financial systems and technology

A company stops buying its own servers and instead rents computing power, storage and software over the internet from an external provider, paying only for what it uses. Which feature of cloud computing does this best illustrate?

The scenario shows on-demand, pay-per-use access to shared resources. The company rents computing power, storage and software from an external provider and pays only for usage, replacing capital spending on servers with operating costs. Responsibility for data and security does not simply transfer to the provider.

  1. AOn-demand, pay-per-use access to shared resourcesCorrect
  2. BComplete transfer of legal responsibility for data to the provider
  3. CElimination of the need for any internet connection
  4. DGuaranteed protection from all cyber attacks

Explanation

Cloud computing provides on-demand access to shared computing resources, typically charged according to usage, converting capital spending into operating costs. Legal responsibility for data normally stays with the customer, so the second option is wrong. Cloud services depend on internet connectivity and do not guarantee security.

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