Unit – 4 - Part – A

1 Define CapEx
Ans Capital Expenditures (CapEx): CapEx refers to investments in assets that have long-term value and are expected to
generate future benefits. These assets often include physical infrastructure, such as servers, data centers, and
networking equipment.
2 What is OpEx in Cloud?
Ans Operating Expenditures (OpEx): OpEx includes ongoing, day-to-day expenses incurred in the regular
operation of a business. This can include costs for utilities, salaries, rent, and services that are consumed
during the current accounting period.
3 Write a short note on pay-per-use on model.
Ans Pay-Per-Use Services:
Some cloud services, such as serverless computing, function on a true pay-per-use model, where customers
are charged for the actual computational resources consumed during the execution of functions or code.
4 What are the types of pricing models in cloud computing?
Ans Pay-as-You-Go (PAYG)
Reserved Instances (RIs)
Spot Instances
Dedicated Hosts
Free Tier
Data Transfer and Bandwidth Pricing
Tiered Pricing
Resource Bundles
License-included Instances
Container Pricing
Serverless Pricing
Machine Learning Pricing
5 What are the importance of cloud cost management?
Ans  Reduced Cloud Spending: The most direct benefit is lowering your overall cloud bill by
eliminating waste and optimizing resource utilization.
 Improved Budget Predictability: Better visibility and forecasting lead to more accurate budgeting
and fewer unexpected cost spikes.
 Enhanced Resource Efficiency: Ensuring that you are using the right resources for the right
workloads and avoiding over-provisioning.
 Better Performance: Rightsizing resources appropriately can lead to improved application
performance and user experience.
 Increased Financial Accountability: Cost allocation and chargeback/showback mechanisms
promote ownership and responsibility for cloud spending within different teams.

6 Differentiate between Cloud Cost Management vs. Cloud Cost Optimization

Ans Cloud Cost Management:
 Focus: Allocating, tracking, reporting, and analyzing cloud spend.
 Goal: Establishing governance, visibility, and accountability to control and allocate
cloud spending effectively.
 Approach: Reactive, often addressing cost issues after they occur.
 Example: Implementing tools to monitor cloud spending and identify potential cost
overruns.
Cloud Cost Optimization:
 Focus:
Using insights from cloud cost management to improve efficiency and reduce costs.
  Goal:
Aligning cloud spending with business goals, maximizing value at the lowest cost.
 Approach:
Proactive, aiming to prevent cost issues from arising in the first place.
 Example:
Implementing best practices like right-sizing resources, utilizing reserved instances,
and optimizing storage classes.

7 What are the different stages of cloud computing life cycle?

Ans Service Strategy
Service Design
Service Development
Service Testing and Quality Assurance
Service Deployment
Service Operation and Management
Service Optimization and Continuous Improvement
Service Decommissioning
Service Archive and Data Preservation
8 Sketch the view of cloud services design.
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9 What is meant by capacity utilization and utilization rate formula?

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10 What are the importance of cloud cost management? Refer Q5

 Unit – 3 - Part – A

1 Define risk management.

Ans Risk management is the process of identifying, assessing, and controlling threats to an
organisation's system security, capital and resources. Effective risk management means
attempting to control future outcomes proactively rather than reactively
2 What is meant by queuing theory?
Ans Queuing theory refers to the mathematical study of the formation, function, and
congestion of waiting lines, or queues.
3 Give the objectives of demand queueing
Ans The objectives of demand queuing focus on effectively managing fluctuating workloads
and optimizing resource allocation within a cloud environment. Specifically, demand
queuing aims to ensure efficient and scalable provisioning of cloud resources, while also
managing potential bottlenecks and ensuring overall system performance
4 Define Cloud Migration
Ans Cloud migration is a general term used to designate transferring digital operations from one
site to a cloud platform. When you migrate to the cloud, it encompasses data, processes, and
applications to third-party servers.
5 Define Reference Model.
Ans The Cloud Computing Reference Model is an abstract model that defines the cloud
vocabulary and design elements, the set of configuration rules, and the semantic
interpretation.
6 What are the characteristics of cloud service capacity planning?
Ans Capacity planning seeks to match demand to available resources. Capacity planning
examines what systems are in place, measures their performance, and determines patterns in
usage that enables the planner to predict demand. Resources are provisioned and allocated
to meet demand.
7 List out the cloud migration deployment methods
Ans  Hybrid Deployment  Multicloud Deployment  Understanding the Cloud Migration
Process
8 Give the importance of cloud capacity management.
Ans Capacity management makes it possible to predict the future behavior of system resources
in scenarios such as these and many others, as well as the resulting impact on business
KPIs. This helps IT correlate business needs to capacity demand and align resources as
needed to support them.
9 Define Freemium.
Ans Freemium is a business model that works by offering a product or service free of charge
(like software, web services etc) while charging a premium for advanced features and
functionality.
10 What is meant by cost management?
Ans Cloud cost management is an organizational practice that helps businesses understand and
manage the costs and requirements associated with cloud technologies. Its main goal is to
find more efficient cost-effective ways to use the cloud.
 Unit – 4 - Part – B

11 a Explain in detail about the pricing models for cloud services.

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12 a Describe the concepts of Freemium.
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12a
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14a Explain in detail about the pricing models for cloud services.
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14a
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13 a
Ans Cloud cost management, also known as cloud cost optimization or FinOps, is the continuous process of
monitoring, analyzing, and optimizing cloud spending to maximize value and minimize waste. It involves
understanding your cloud usage and costs, implementing strategies to improve efficiency, and establishing
governance to ensure ongoing cost control.

1. Visibility and Monitoring:

 Granular Tracking: Understanding exactly what resources you're consuming (compute instances,
storage, databases, networking, serverless functions, etc.) and how much each costs. This includes
breaking down costs by project, team, application, and environment.
 Real-time Monitoring: Continuously tracking your cloud spending and resource utilization to
identify trends, anomalies, and potential cost overruns as they happen.
 Centralized Dashboards: Utilizing tools and platforms that provide a unified view of your cloud
costs across different services and providers (in multi-cloud environments).
 Tagging and Cost Allocation: Implementing a robust tagging strategy to categorize cloud
resources based on various attributes (e.g., owner, department, application). This enables accurate
cost allocation and chargeback/showback mechanisms.

2. Analysis and Reporting:

 Cost Analysis: Examining historical and current cost data to identify spending patterns,
inefficiencies, and areas for optimization.
 Anomaly Detection: Using AI and machine learning to identify unusual spending patterns or
unexpected cost spikes that require investigation.
 Budgeting and Forecasting: Setting budgets for cloud spending and using historical data and
trends to forecast future costs. This helps in proactive planning and avoiding surprises.
 Customizable Reports: Generating reports tailored to different stakeholders (finance, engineering,
management) to provide insights into cloud spending and performance.

3. Optimization Strategies and Techniques:

 Rightsizing: Matching the size and type of your cloud resources (e.g., virtual machine instances) to
the actual workload requirements. Avoiding over-provisioning (paying for more capacity than you
need) and under-provisioning (impacting performance).
 Idle Resource Management: Identifying and eliminating unused or underutilized resources such as
idle compute instances, unattached storage volumes, and outdated backups. Automating the process
of turning off or deleting these resources can lead to significant savings.
 Storage Optimization: Choosing the most cost-effective storage tiers based on data access
frequency and retention requirements (e.g., moving infrequently accessed data to archive storage).
Implementing data compression and deduplication techniques.
 Networking Optimization: Analyzing network traffic and data transfer costs. Optimizing network
architecture to reduce latency and egress charges.
 Leveraging Discount Programs: Taking advantage of cost-saving options offered by cloud
providers such as:
o Reserved Instances (RIs) or Savings Plans
o Spot Instances
o Volume Discounts
 Autoscaling: Automatically adjusting the number of resources (e.g., compute instances) based on
demand. Scaling up during peak periods and scaling down during low-usage times ensures optimal
performance and cost efficiency.
 Serverless Computing: Utilizing serverless services (e.g., AWS Lambda, Azure Functions, Google
Cloud Functions) where you only pay for the actual compute time consumed, eliminating the need
to provision and manage servers.
13a  Power Scheduling: Automatically starting and stopping non-production resources (e.g.,
Ans development and testing environments) based on business hours or project schedules.
 Multi-Cloud Cost Management: Developing strategies and using tools to manage and optimize
costs across multiple cloud providers, taking advantage of the best pricing and services each offers.

4. Governance and Policies:

 Establishing Spending Limits and Budgets: Setting clear budgets for different teams, projects,
and environments and implementing alerts to notify stakeholders when spending approaches or
exceeds these limits.
 Implementing Provisioning Policies: Defining rules and guidelines for how cloud resources should
be provisioned, including instance types, sizes, and tagging requirements.
 Access Control and Permissions: Ensuring that only authorized personnel can provision and
manage cloud resources to prevent unauthorized or wasteful spending.
 Cost Awareness and Culture: Fostering a culture of cost awareness among engineering, finance,
and business teams through training, reporting, and shared responsibility for cloud spending.

5. Tools and Automation:

 Cloud Provider Native Tools: Utilizing the cost management and billing tools provided by each
cloud platform (e.g., AWS Cost Explorer, Azure Cost Management, Google Cloud Cost
Management).
 Third-Party Cloud Cost Management Platforms: Employing specialized tools from vendors that
offer advanced features for cost visibility, analysis, optimization, and governance across multiple
clouds.
 Automation: Automating various cost management tasks such as identifying and stopping idle
resources, rightsizing recommendations, applying tags, and generating reports. Infrastructure-as-
Code (IaC) can also contribute to cost control by ensuring consistent and well-defined resource
deployments.

Benefits of Effective Cloud Cost Management:

 Reduced Cloud Spending: The most direct benefit is lowering your overall cloud bill by
eliminating waste and optimizing resource utilization.
 Improved Budget Predictability: Better visibility and forecasting lead to more accurate budgeting
and fewer unexpected cost spikes.
 Enhanced Resource Efficiency: Ensuring that you are using the right resources for the right
workloads and avoiding over-provisioning.
 Better Performance: Rightsizing resources appropriately can lead to improved application
performance and user experience.
 Increased Financial Accountability: Cost allocation and chargeback/showback mechanisms
promote ownership and responsibility for cloud spending within different teams.
 Strategic Investment Opportunities: Savings achieved through cost optimization can be
reinvested in other critical areas of the business.
 Improved Governance and Compliance: Establishing clear policies and controls helps ensure that
cloud usage aligns with organizational and regulatory requirements.
 Data-Driven Decision Making: Comprehensive cost data and analysis provide valuable insights for
making informed decisions about cloud strategy and resource allocation.
15 a Explain in detail about the Opex and capex
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 Unit – 3 - Part – B

11 a Explain in detail about the cloud computing reference model?

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12 a Explain in detail about the Cloud Service Life Cycle
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13 a Explain in detail about the Benchmarking in cloud computing.
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14 a Explain in detail about the Cloud migration deployment.
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15 a Describe the concepts of cloud capacity planning
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