Which of the following statements correctly reflects costs associated with cloud computing?

The statement that costs can be volatile accurately reflects an essential aspect of cloud computing. In cloud environments, pricing models are often usage-based, which means that as demand fluctuates—such as increased usage during peak times or reduced usage during off-peak times—the costs will vary correspondingly. This unpredictability can make budgeting and financial planning a challenge for organizations.

Cloud service providers typically offer pay-as-you-go pricing, allowing organizations to scale resources up or down based on their needs. While this flexibility can be beneficial, it also means that costs can spike unexpectedly if usage increases significantly or if the organization does not carefully manage resource utilization. Thus, understanding the potential for cost volatility is crucial for organizations leveraging cloud solutions, as they need to plan for the variability in their operational expenses.

In contrast, other statements provide insights that do not necessarily reflect the operational financial model of cloud computing. Up-front capital investments are often lower in cloud scenarios compared to traditional on-premises setups. Service Level Agreements (SLAs) can vary widely between providers, and some might indeed include termination fees. Lastly, acquiring server hardware is not typically an expense relevant to organizations using cloud services, as they are consuming infrastructure as a service rather than purchasing physical hardware.