Which concept shifts costs from Capital Expenditure to Operating Expenditure in cloud computing?

• A. Sold on Demand
• B. Elastic
• C. On Demand and Self Service
• D. Fully Managed

Answer: (A)

The main idea being tested is how cloud pricing moves costs from buying assets to paying for ongoing services. In cloud, you don’t purchase hardware or software upfront. Instead you access resources on demand and are billed for what you use. That pay-as-you-go, on-demand pricing turns what would have been a capital expense (a one-off purchase) into an operating expense (a continuing, usage-based cost). The phrase “sold on demand” captures this pricing approach: resources are provided as needed and paid for over time, rather than bought in advance.

Elasticity and self-service describe flexibility and the ability to scale or provision resources yourself, which support the on-demand model, but the key driver of the shift from CapEx to OpEx is the on-demand, pay-as-you-go pricing itself. Fully managed services relate to outsourcing management tasks, not directly to how costs are categorized.