Microsoft Certified: Azure Fundamentals (AZ-900) Practice Exam

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If your company is running a predictable solution with known workloads for the long term, what is a viable solution?

OpEx - Operational Expense cloud solution

CapEx Computing Solution

When a company has predictable solutions with known workloads for the long term, a capital expenditure (CapEx) computing solution is a viable approach. In this case, CapEx involves investing in physical hardware and infrastructure upfront. This can be financially advantageous for organizations anticipating stable workloads over an extended period, as it allows them to fully utilize their assets without the ongoing costs associated with operational expenditure (OpEx) models.

CapEx investments typically include costs associated with purchasing servers, storage, and networking equipment, with the expectation that these resources will be used extensively over their lifecycle. This aligns well with predictable workloads, allowing for better budgeting and forecasting of expenses, as these costs are incurred initially with less variability over time.

In contrast, while an OpEx model can offer flexibility and scalability, it is more suited for scenarios where workloads are unpredictable or vary significantly, as it involves paying for services on a subscription basis or as resources are used. Therefore, a CapEx approach is more appropriate for companies with stable and long-term predictable workloads.

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