Google Cloud Digital Leader Practice Exam

What typically drives the recurring costs in cloud computing compared to on-premises solutions?

1. Upfront hardware investments

2. Monthly subscriptions or pay-per-use

3. Fixed maintenance charges

4. Support service fees

The correct answer is: Monthly subscriptions or pay-per-use

Recurring costs in cloud computing are primarily driven by monthly subscriptions or pay-per-use models. This payment structure is designed to provide flexibility and scalability, allowing organizations to pay only for the resources they consume. Unlike traditional on-premises solutions, which often require significant upfront capital investment in hardware and infrastructure, cloud services allow businesses to align their costs more closely with their actual usage patterns. In cloud environments, organizations typically incur costs based on the amount of resources they utilize—whether that’s storage, compute power, or bandwidth. This model not only lowers the barrier to entry for utilizing advanced technology but also enables easier scaling as business needs change. Additionally, customers can benefit from ongoing innovations and updates from cloud providers without incurring additional costs for upgrades or hardware replacements, further emphasizing the recurring nature of these expenses.