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

Verdant Retail has 40 stores with highly seasonal demand. Its board wants to move its e-commerce platform to a public cloud mainly to avoid buying capacity that sits idle outside peak periods. Which strategic benefit of cloud computing is most directly being sought?

The benefit sought is elasticity. Public cloud lets Verdant scale capacity up for seasonal peaks and down afterwards, turning fixed infrastructure spending into variable, usage-based cost, so it avoids paying for idle capacity outside peak periods.

  1. AElasticity that converts fixed capacity cost into variable usage-based costCorrect
  2. BGreater physical control over data location
  3. CRemoval of all information security responsibility
  4. DLower switching costs between providers

Explanation

Public cloud allows capacity to scale up and down with demand, so costs become variable and track usage, which suits seasonal peaks. Physical control is reduced, not increased. Security responsibility is shared, not removed, and lock-in often raises switching costs.

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