Cloud Bursting Occurs When a Company Uses Its Own Computing

question 119

True/False

Cloud bursting occurs when a company uses its own computing infrastructure for normal usage and accesses the cloud when it needs to scale for high/peak load requirements, ensuring a sudden spike in usage does not result in poor performance or system crashes.

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Definitions:

Capital Structure

The composition of a company's funding through debt and equity, and how it impacts its risk and value.

Fixed Cost

Business expenses that remain constant regardless of the level of production or sales, such as rent, salaries, and insurance premiums.

Financial Leverage

The use of borrowed funds with a fixed cost in an attempt to increase the returns to shareholders by magnifying investment gains or losses.

EBIT

Earnings Before Interest and Taxes, a financial metric that calculates a firm’s profit excluding interest and income tax expenses.