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ACCA Applied Knowledge · Business and Technology · The impact of advances in technology

Which of the following best describes the 'pay-as-you-go' feature of cloud computing?

Pay-as-you-go means the customer is charged only for the cloud resources it actually consumes, such as storage or processing time. This avoids large upfront capital spending on its own infrastructure and turns costs into variable operating expenses.

  1. AThe customer buys the hardware outright and the supplier maintains it
  2. BThe customer pays only for the computing resources it actually uses, rather than investing in its own infrastructureCorrect
  3. CThe customer pays a fixed annual licence fee regardless of usage

Explanation

Pay-as-you-go (metered) pricing means charges follow actual consumption of storage, processing or software, converting capital expenditure into operating expenditure. Buying hardware outright or paying a fixed fee regardless of usage does not reflect usage-based charging.

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