Page 152 - Cloud Essentials

C. Inability to encrypt data stored in the cloud
D. Migrating in-house virtual machines to the cloud

B. Cloud providers going out of business presents the greatest risk.

Even with contingency plans in place, this could be disruptive to an
organization, especially if most of the organization’s IT services are
offered by a single provider.
A, C, and D are incorrect. Network connectivity problems are a
short-term concern. Data encryption and virtual machine migration are

important technical details, but none of these presents a greater risk
than a cloud provider going out of business.

Explain the Implications for Direct Cost and Cost Allocations

4. How does cloud adoption change financial management skills?
A. Yearly budget cycles change because of rapid cloud elasticity.

B. Cloud customers must monitor their own cloud resource usage and
pay accordingly.

C. OPEX becomes CAPEX.
D. Cloud service costs are fixed.

E. Performance monitoring should be performed by the cloud
customer’s IT staff.

A. Instead of traditional yearly budget cycles, finance staff must
account for the fact that rapid cloud elasticity will make OPEX

variable.
B, C, D, and E are incorrect. Cloud providers monitor customer
usage, and they bill the customers accordingly, not the other way
around. Cloud adoption changes CAPEX to OPEX, not the other way
around. Even though cloud customer IT staff should be monitoring
cloud service performance, this is not related to financial management
skills.

5. Which of the following statements correctly reflects costs associated
with cloud computing?
A. There is an up-front capital investment.

B. SLAs never contain cloud service termination fees.

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