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

Tamsin Pharma plans to move its research analytics to the cloud. The finance director's business case shows lower IT capital expenditure and says total costs will fall sharply. The IT director warns that after three years costs may exceed the on-premises alternative. Which cloud risk is the IT director most likely highlighting?

The IT director is highlighting uncontrolled consumption-based costs. Cloud replaces capital spending with usage charges, and growing storage, data egress fees and integration work can push cumulative costs above on-premises levels unless usage is governed and monitored.

  1. AUncontrolled consumption-based costs and hidden charges such as data egress and integrationCorrect
  2. BReduced scalability when research workloads grow
  3. CInability to access services remotely
  4. DLoss of the benefit of automatic software updates

Explanation

Cloud shifts spending from capex to opex, but usage-based billing, data transfer (egress) fees, storage growth and integration work can cause costs to escalate over time. The other options are contrary to the usual cloud benefits of scalability, remote access and managed updates.

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