What costs must be factored into the model?

• A. Direct cloud usage costs only.
• B. Licensing costs only.
• C. No costs beyond the cloud service price.
• D. Shared costs such as support, amortization, and unallocated expenses.

Answer: (D)

In these models, the total picture includes more than just the cloud service price. You must account for shared costs that support the entire cloud environment. These overheads aren’t tied to a single service but are necessary for operations: ongoing support and services, amortization or depreciation of assets, and unallocated or corporate overhead expenses that cover governance, security, facilities, and IT administration. Including these shared costs gives a true total cost of ownership, which is essential for accurate budgeting, pricing decisions, and optimization. Direct usage costs and licensing are important, but they don’t fully capture what it actually costs to run and support the environment.