Question

Average resource demand is 45 units,Baseline (owned) unit cost is 200 units,Time is 10 hours,Peak resource demand is 100 units. If the cloud is cheaper than owning of computer infrastructures, the utility premium is
a. Greater than 2.22
b. Less than 2.22
c. Atleast 4.45
d. Atmost 4.45

Answer 1

Answer:- Option C.......

Answer 2

Correct answer is option (b) Less than 2.22.

Explanation:

When the ratio of peak resource demand to the average resource demand is less that the utility premium, then the cloud is cheaper that owning of a computer.

Here, ratio of peak resource demand to the average resource demand = 100/45 = 2.22

So, if the cloud is cheaper than owning of computer, then utility premium must be less than 2.22.