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An enterprise is planning to migrate its core application workloads from an on-premises data center to Google Cloud. In their current on-premises environment, the company incurs large upfront capital expenditures (CapEx) to procure hardware sized for peak annual traffic, resulting in low average hardware utilization throughout most of the year.
The leadership team wants to understand the financial implications of moving to a cloud consumption model and how this shift affects Total Cost of Ownership (TCO) and organizational financial agility.
Which statement accurately describes the economic impact of transitioning from fixed-cost infrastructure to a cloud variable-cost structure?
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