Microsoft Azure Fundamentals AZ-900 Practice Exam 2026 – Complete Study Resource

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How does Azure's consumption-based billing model work?

It charges a fixed rate for all services and resources

Costs are based on the actual usage of services

The consumption-based billing model in Azure operates by charging customers based on their actual usage of services. This means that users pay only for the resources and services they consume rather than a flat rate or fixed monthly fee. This model is particularly advantageous for organizations that experience fluctuating workloads or variable usage patterns, as it allows them to scale resources up or down according to their specific needs without incurring unnecessary costs.

This approach also aligns closely with the pay-as-you-go pricing strategy, making it a cost-effective solution for managing cloud expenditures while enabling flexibility in how resources are allocated and consumed. As a result, businesses only incur charges when they utilize Azure services, which can help to optimize budgets and reduce waste.

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Payment is only due at the end of the year

Only the infrastructure costs are billed

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