Describe cloud concepts

The correct answer describes the fundamental concept of Cloud Computing: delivering computing services over the internet with usage-based pricing. This model allows users to access resources like compute power and storage on-demand without managing the underlying physical infrastructure, paying only for the resources they use (Pay-as-you-go).

Other options are incorrect:
- Leasing dedicated physical hardware typically refers to a dedicated hosting or co-location model, not the general cloud computing abstraction where resources are often shared (multi-tenant) and virtualized.
- Managing virtualized applications on private servers via a secure connection describes a specific implementation (possibly Private Cloud or remote virtualization) but misses the broader definition of public cloud computing, which emphasizes internet delivery and consumption-based pricing.
- Accessing centralized mainframes via a private tunnel refers to a legacy mainframe computing model, not modern cloud computing.

The correct answer is: Usage fees are generated only as resources are actively utilized.

This option correctly identifies the defining characteristic of the consumption-based model (Operational Expenditure or OpEx). In this model, there is no upfront cost; instead, the organization is billed based on the actual resources consumed (e.g., compute time, storage used, data transfer) at the end of a billing cycle. This eliminates the need to invest money before services are used.

Why the other answers are incorrect:

• The statement regarding amortized operational costs describes the accounting process for Capital Expenditure (CapEx), where physical hardware is purchased upfront and its cost is spread over its useful lifespan. This applies to the legacy server room, not the cloud model.
• The statement about a fixed subscription fee implies a flat rate regardless of usage, which contradicts the definition of a consumption-based model where costs fluctuate based on activity.
• The statement detailing upfront capital investment describes the CapEx model (buying hardware before needing it), which is the opposite of the consumption-based approach.

The correct answer defines Cloud Computing as the delivery of computing services—including servers, storage, databases, networking, software, analytics, and intelligence—over the Internet ('the cloud'). This matches the standard definition provided by Microsoft Azure Fundamentals.

The other options are incorrect because:

• Virtualizing hardware assets is the underlying technology that enables cloud computing, but it does not define the service delivery model itself.
• Connecting to dedicated remote servers via a private network describes a specific deployment scenario or traditional hosting, rather than the broad concept of cloud computing which is primarily defined by internet-based access and shared resources.
• Managing physical infrastructure describes the operational model of a datacenter provider, often related to High Availability, but it does not define what cloud computing is from a consumer perspective.