CompTIA Exam CLO-002 Topic 4 Question 107 Discussion

Hosting the application in the cloud means that the company does not need to invest in building and maintaining an infrastructure to host the application on premises.This reduces the company's capital expense, which is the money spent on acquiring or upgrading fixed assets, such as servers, storage, network, and software1.Instead, the company can pay for the cloud services that they use on a subscription or consumption basis, which is considered an operating expense, which is the money spent on the day-to-day running of the business1.Hosting the application in the cloud can also provide other financial benefits, such as lower energy costs, higher scalability, and faster time to market2.

The other options are not correct, as they do not describe the financial impact of hosting the application in the cloud accurately.The company will not be able to defer licensing costs, as they will still need to pay for the software licenses that they use in the cloud, either as part of the cloud service fee or separately3.The provider will not share responsibility for the company's monthly bill, as the company will be solely responsible for paying for the cloud services that they consume, based on the provider's pricing model and terms of service4.Monthly operating costs will not remain constant despite usage, as the cloud services are typically charged based on the amount of resources or features that the company uses, such as storage, bandwidth, CPU, memory, or transactions4. Therefore, the monthly operating costs will vary depending on the usage and demand of the application.Reference:Capital Expenditure (CapEx) Definition;Cloud Computing Benefits: 7 Key Advantages for Your Business;Cloud Computing Licensing: What You Need to Know;Cloud Computing Pricing Models: A Comprehensive Guide.