2.3 How cloud technology enhances business value

What is one of the main benefits of using cloud technology for businesses?

• It increases the need for physical infrastructure.

• It reduces upfront capital expenditure.

• It makes businesses buy more servers.

How do businesses pay for cloud services?

• By buying all the equipment upfront.

• On a subscription or pay-as-you-go basis.

• By paying a one-time fee.

What type of cost does cloud technology help to minimise?

• Operating cost.

• Capital expenditure.

• Marketing cost.

Which of the following is an example of a cloud service provider?

• Amazon Web Services (AWS).

• Local computer shop.

• A home internet provider.

What can businesses avoid by using cloud technology?

• Buying more office chairs.

• Purchasing physical servers and data centres.

• Hiring more staff.

What is a benefit of converting capital expenditure into operating expenses?

• It increases the initial cost.

• It makes budgeting more manageable.

• It requires more physical space.

What can businesses use the saved money for when they minimise capital expenditure?

• Buying more desks.

• Marketing or product development.

• Increasing the number of meetings.

Which of the following is NOT a benefit of cloud technology?

• Increased flexibility.

• Higher upfront costs.

• Improved operational efficiency.

What does cloud technology eliminate the need for?

• More employees.

• Costly physical infrastructure.

• More office space.

How does cloud technology affect operational efficiency?

• It decreases it.

• It improves it.

• It has no effect.