AZ-900 Certification Notes

Chapter 2.2 - The Economy of Cloud Computing

Capital and Operational Expenditure

• Capital Expenditure

  • Money spent by a business or organization on acquiring or maintaining fixed assets, such as land, buildings, and equipment.
  • Large upfront investments.

• Operational Expenditure

  • An ongoing cost for running a product, business, or system on a day-to-day basis, including annual costs.
  • Pay-as-you-go

• Consumption-based Pricing

  • Low usage = Low cost
    • No lock-in fees. Exposure to Azure.

Exam Tips

• Capital Expenditure (CapEx) is buying hardware outright, paid upfront as a one time purchase.
• Operational Expenditure (OpEx) is ongoing costs needed to run your business.
• Consumption-based pricing let's you pay only for what you use.