Question

A hospital's finance committee is reviewing a proposal to keep running its patient records system in an owned, on-premises data center rather than migrating to the cloud. The CFO argues that the on-premises approach gives the organization one specific financial advantage the cloud cannot easily match. Which characteristic of the on-premises capital expenditure model is the CFO most likely referring to?

Accepted Answer

The organization owns depreciable physical assets and has predictable, fixed upfront costs rather than variable ongoing charges

Answer

The organization pays only for the compute resources it actually consumes each month

Answer

The organization can instantly scale capacity up and down to match patient demand

Answer

The organization shifts all hardware maintenance responsibility to a third-party provider