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Which observation correctly describes a TCO (Total Cost of Ownership) comparison between on-prem and cloud?
ACloud is always 10× cheaper than on-prem regardless of workload
BCloud TCO replaces hardware/space/power/cooling/staffing capex with usage-based opex, but doesn't always come out cheaper — it depends on workload steadiness and discipline around right-sizing
CTCO comparisons aren't possible because the two are fundamentally identical
DOn-prem is always cheaper than cloud regardless of workload
Answer & Solution
Correct answer: B. Cloud TCO replaces hardware/space/power/cooling/staffing capex with usage-based opex, but doesn't always come out cheaper — it depends on workload steadiness and discipline around right-sizing
Honest TCO analysis acknowledges the shift in cost categories plus the operational realities — predictable steady workloads may favour reserved/on-prem, spiky/unpredictable ones favour pure cloud. The absolutist claims in the other options are wrong.
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