Question

Which of the following is a way that a company might save money by using the cloud?

No savings are possible by using the cloud as companies still need to pay rent on the software

Upfront costs associated with acquiring new servers are avoided and server operating system software maintenance and patching are handled by the cloud provider rather than the company using the cloud services

Companies can send their already purchased/owned servers to the cloud provider to use when the software use increases.

Two of the above are ways to save money.

Answer 1

We evaluate each option one by one :

No savings are possible by using the cloud as companies still need to pay rent on the software

Not true, as evident later.

Upfront costs associated with acquiring new servers are avoided and server operating system software maintenance and patching are handled by the cloud provider rather than the company using the cloud services

True. The clients only need to pay the subscription fees, and all the other server-backend maintenance/operations is handled by the cloud-provider.

Companies can send their already purchased/owned servers to the cloud provider to use when the software use increases.

Not true. The cloud-providers do not demand a "server exchange" program.

Thus, the correct option is (2nd option) :

Upfront costs associated with acquiring new servers are avoided and server operating system software maintenance and patching are handled by the cloud provider rather than the company using the cloud services