Why Cloud Technology Is Transforming Business CLOUD-DIGITAL-LEADER Practice Questions (Page 1)

Questions 1–5

1. 1foundation · easy

   How does cloud technology differ from traditional on-premises IT in terms of resource provisioning?

   • ACloud resources are fixed and cannot be scaled, while on-premises resources are flexible
   • BBoth cloud and on-premises require the same level of upfront capital investment
   • CCloud resources are provisioned on demand, while on-premises resources require upfront procurement
   • DOn-premises resources are accessed over the internet, while cloud resources are local
   Reveal Solution Discussion Select an answer first
2. 2foundation · easy

   A startup expects its user base to grow rapidly and unpredictably. Which cloud benefit is most directly relevant to this situation?

   • ASustainability
   • BCollaboration
   • CScalability
   • DSecurity
   Reveal Solution Discussion Select an answer first
4. 3foundation · easy

   Which statement accurately contrasts the cost model of cloud technology with that of traditional on-premises IT?

   • AOn-premises IT eliminates all ongoing operational costs
   • BBoth models have identical cost structures
   • CCloud requires a larger upfront investment than on-premises
   • DCloud converts large upfront capital expenses into variable operating expenses
   Reveal Solution Discussion Select an answer first
5. 4foundation · easy

   What is a primary risk for a company that continues to rely on outdated, on-premises technology?

   • ALosing competitive advantage to more agile rivals
   • BReduced need for IT staff
   • CGuaranteed compliance with all regulations
   • DLower operational costs
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6. 5expert · hard

   A well-established insurance company has a profitable business but is facing increasing competition from digital-first insurtech startups. These startups offer faster, more personalized policies using data analytics. The insurance company's legacy systems are slow to change, and its data is siloed across departments. The company wants to remain competitive. What is the most critical challenge the company must overcome to successfully transform?

   • AResistance from employees who are comfortable with existing processes
   • BThe lack of a clear digital strategy
   • CThe high cost of cloud migration
   • DThe complexity of integrating legacy systems and breaking down data silos
   Reveal Solution Discussion Select an answer first