1. Foundations

Cloud Economics — Quiz

Test your understanding of cloud economics with 5 practice questions.

Practice Questions

Question 1

In a parametric cost model defined by $C=aW^b$, if $a=50$, $b=0.75$, and $W=100$, what is the estimated cost $C$?

Question 2

A reserved cloud instance costs \\5,000 per year, while on-demand pricing is \\$0.80 per hour. Above what annual usage in hours does the reserved instance become more cost-effective than on-demand?

Question 3

A migration requires an upfront investment of \\300,000 and yields annual net savings of \\$80,000 for 5 years. Using a discount rate of 5\\%, what is the approximate net present value (NPV)?

Question 4

For a company storing 200 TB with tiered pricing of 0–50 TB at \\$0.023/GB, 50–150 TB at \\$0.021/GB, and above 150 TB at \\0.019/GB, what is the weighted average cost per GB?

Question 5

In a Total Cost of Ownership (TCO) analysis for cloud migration, which of the following is typically classified as an indirect cost?