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ACCA Strategic Professional · Strategic Business Leader · Cloud, mobile and smart technology

Kestrel Logistics, a mid-sized freight company, replaces its in-house servers with a public cloud service where it rents computing capacity and pays monthly according to usage. Demand peaks sharply in the festive season. Which benefit of cloud adoption is MOST directly illustrated by this arrangement?

The key benefit shown is elasticity: Kestrel can scale capacity up for seasonal peaks and down afterwards, paying for usage as an operating cost instead of buying servers. The other options are wrong because cloud does not remove data accountability, connectivity needs, or increase physical control.

  1. AElasticity, with capacity scaled up or down and costs shifting from capital to operating expenditureCorrect
  2. BComplete transfer of accountability for data protection to the provider
  3. CElimination of any dependence on network connectivity
  4. DGreater physical control over where data is stored

Explanation

Public cloud lets a firm scale resources to match peaks and pay for use, converting upfront capital expenditure into operating cost. Accountability for data protection stays with the customer, connectivity remains essential, and physical control of data location is reduced, not increased.

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