2.4 Explain Different IT Purchasing and Consumption Models 700-805 Practice Questions (Page 2)

Questions 6–10

1. 6application · medium

   A regional bank is modernizing its core banking platform. The CFO wants to avoid large upfront capital outlays and instead pay for software based on the number of active customer accounts each month. The IT director notes that the bank's transaction volumes fluctuate seasonally. Which licensing model best aligns with the CFO's financial preference and the bank's variable usage pattern?

   • AEnterprise agreement with a fixed annual true-up at year-end
   • BSubscription licensing with a fixed annual fee per user
   • CUsage-based licensing billed per active customer account per month
   • DPerpetual licensing with a one-time fee and annual maintenance
   Reveal Solution Discussion Select an answer first
2. 7foundation · easy

   What is a key characteristic of a services subscription compared to a one-time service purchase?

   • AIt requires a large upfront capital investment
   • BIt provides a fixed, non-recurring deliverable
   • CIt is only available for software, not for services
   • DIt involves recurring fees for ongoing delivery of services
   Reveal Solution Discussion Select an answer first
4. 8expert · hard

   A company is evaluating a usage-based licensing model for its analytics platform, billed per query executed. The finance team is concerned about budget predictability because the number of queries varies significantly by department. The IT team notes that the platform is mission-critical and usage is expected to grow. Which strategy best addresses the finance team's concern while accommodating growth?

   • AMove to a subscription model with a fixed monthly fee regardless of usage
   • BAsk the vendor to cap the total number of queries per month
   • CSwitch to a perpetual license to eliminate usage variability
   • DImplement a budget alert system and negotiate a discounted rate for committed usage volume
   Reveal Solution Discussion Select an answer first
5. 9foundation · easy

   Which software licensing model typically requires the customer to renew the license at the end of a contract term to continue using the software?

   • AUsage-based license
   • BOpen-source license
   • CPerpetual license
   • DSubscription license
   Reveal Solution Discussion Select an answer first
6. 10foundation · easy

   Which of the following is a typical feature of an enterprise agreement?

   • APricing that is higher than standard retail pricing
   • BA separate contract for each individual software title
   • CA requirement to purchase all products from a single vendor
   • DA single contract covering multiple products and services
   Reveal Solution Discussion Select an answer first