Which statement correctly compares capital expenditure (CapEx) and operational expenditure (OpEx) in the context of cloud computing?
A.Cloud computing primarily uses CapEx — you buy servers upfront and depreciate them
Buying servers upfront is the on-premises CapEx model — cloud removes that upfront purchase.
B.Cloud computing primarily uses OpEx — you pay for resources as you consume them, with no upfront hardware purchase
Correct — consumption-based billing is OpEx: pay for what you use, when you use it.
C.CapEx and OpEx are identical in cloud and on-premises models
They differ fundamentally: CapEx = upfront investment; OpEx = ongoing consumption costs.
D.On-premises computing is an OpEx-only model with no upfront costs
On-premises requires substantial CapEx for hardware, licenses, and facilities.
Why this answer
Cloud shifts spending from CapEx (buying physical infrastructure upfront) to OpEx (paying for services as consumed, like a utility bill). On-premises requires CapEx for servers, storage, and facilities.
Correct answer: B · Last reviewed 2026-02-13
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