Economics_Cloud_Computing_Flashcards
(20 cards)
What are the five essential characteristics of cloud computing (NIST)?
- Broad network access
- On-demand self-service
- Resource pooling
- Rapid elasticity
- Measured service
What is the primary benefit of broad network access in cloud computing?
It promotes mobility and allows access through standard devices like laptops and smartphones.
Why is on-demand self-service a key characteristic?
It enables users to provision resources automatically, reducing human bottlenecks.
What is resource pooling in cloud computing?
A multi-tenant model where resources are dynamically assigned and reassigned, improving efficiency.
How does rapid elasticity benefit businesses?
It allows resources to scale up/down quickly, appearing infinite to users and flattening IT provisioning time.
What is meant by measured service?
Resource usage is monitored and billed on a pay-as-you-go model, enabling cost control.
What are two major business benefits of cloud computing?
- Rapid provisioning
- Ease of use
How does cloud computing support remote and hybrid work?
By enabling easy remote access to systems and collaboration tools.
What is the difference between CapEx and OpEx in cloud economics?
CapEx is upfront infrastructure investment, while OpEx is pay-as-you-go operational expense.
Name two types of business metrics used to assess cloud value.
Direct metrics and indirect metrics
Give examples of direct metrics.
TCO, uptime, latency, VMs deployed, churn rate
What is TCO in cloud computing?
Total Cost of Ownership — accounts for all costs over a system’s lifecycle (acquisition, setup, maintenance, etc.)
Why is TCO useful?
It helps compare cloud vs traditional infrastructure costs and reflects total financial investment.
What are examples of indirect metrics?
Time to Market, employee productivity, innovation rate, customer satisfaction
What is Time to Market (TTM)?
Time it takes to develop and launch a new product/service. Faster TTM = competitive advantage.
How does cloud improve productivity?
Through automation, collaboration tools, and reduced infrastructure overhead.
Give three examples of cloud business benefits in practice.
- Faster product launches (Spotify)
- Cost savings (Airbnb)
- Disaster recovery (Dropbox)
What economic impact does cloud adoption have?
Lowers startup barriers, boosts employment and innovation, improves national productivity.
What is vendor lock-in?
Dependence on one cloud provider’s tools/services, making switching difficult.
How can businesses reduce vendor lock-in risk?
Use open standards, multi-cloud strategies, and plan exit strategies.
