A careful analysis of financial benefits provides a clear picture about the cost savings in cloud
adoption.
Which two factors should the analysis compare?

A.
ROI and CAPEX

B.
CAPEX and OPEX

C.
TCO and SLA

D.
TCO and ROI

Explanation:
Financial Advantage
A careful analysis of financial benefits provides a clear picture about the cost-savings in adopting
the cloud. The analysis should compare both the Total Cost of Ownership (TCO) and the Return
on Investment (ROI) in the cloud and non cloud environment and identify the potential cost benefit.
While calculating TCO and ROI, organizations and individuals should consider the expenditure to
deploy and maintain their own infrastructure versus cloud adoption costs. While calculating the
expenditures for owning infrastructure resources, organizations should include both the capital
expenditure (CAPEX) and operation expenditure (OPEX). The CAPEX includes the cost of
servers, storage, OS, application, network equipment, real estate, and so on. The OPEX includes
the cost incurred for power and cooling, personnel, maintenance, backup, and so on. These
expenditures should be compared with the operation cost incurred in adopting cloud computing.
The cloud adoption cost includes the cost of migrating to the cloud, cost to ensure compliance and
security, and usage or subscription fees. Moving applications to the cloud reduces CAPEX, except
when the cloud is built on-premise.
EMC E10-001 Student Resource Guide. Module 13: Cloud Computing