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

Which financial model is best known for being quickly scalable?

1. OpEx

2. CapEx

3. Both

4. None

The correct answer is: OpEx

The operational expenditure (OpEx) model is recognized for its quick scalability primarily because it aligns with a pay-as-you-go approach. This model allows organizations to pay for services as they consume them rather than making large, upfront capital investments. With OpEx, businesses can scale their operations up or down according to demand without the need for significant financial outlay or long-term commitments. This flexibility is especially beneficial in cloud computing and services, where resources can be provisioned instantly and adjusted based on real-time needs. Companies can experiment and innovate without the burden of maintaining substantial capital resources, thus enhancing agility and responsiveness to market changes. In contrast, the capital expenditure (CapEx) model typically requires substantial initial investments in physical infrastructure and resources, making it less responsive to fluctuating demands. This can result in slower scalability as businesses need to invest time and money upfront before they can realize any benefits from expansion. Therefore, the OpEx model stands out as the preferred choice for companies seeking rapid scalability in their operations.