What should you recommend as the best way to include this in the costing model?

A service provider is preparing to offer PaaS. One of the challenges they are facing is incorporating the cost of databases.

What should you recommend as the best way to include this in the costing model?
A . Treat database licensing as a variable cost in the model
B . Treat database licensing as a fixed cost in the model
C . Treat database licensing as a hybrid cost in the model
D . Ignore database costs in the model

View Answer

Answer: B

Explanation:

Two types of values can be used to associate cost with a particular service: fixed and variable.

Fixed costs are consumption-based and are typically associated with capital expenditures. Examples of fixed costs are compute, memory, storage, network, load balancers, firewalls, licensing , power, and cooling.

Variable costs identify administrative and operational activities to be performed and assigns a cost to each activity. These are typically indirect, or overhead, operational expenditures. Examples of variable costs include Full-Time Equivalents (FTE) for development, administration and server, storage and network administrators, cloud operators and administrators, developers, operators, and support engineers