Question

When is cloud cheaper than owning?
a. When utility premium is more than the ratio of peak demand to average demand
b. When utility premium is less than the ratio of peak demand to average demand
c. When utility premium is equal to the ratio of peak demand to average demand
d. When utility premium is equal to twice the ratio of peak demand to average demand

Answer 1

when utility premium is less

Answer 2

Answer:

Option (b) When utility premium is less than the ratio of peak demand to average demand.

Explanation:

                 $C_{t} < B_{t}$ ⇒ A × U × B × T < P × B × T

                                                     ⇒ $U < \frac{P}{A}$

Cloud is cheaper than owning when utility premium is less than the ratio of the peak demand to the average  demand then we can say it is cheaper.