Explantation for each answer:
• Average Revenue per User (ARPU)
o ARPU measures the average revenue generated per user or customer. While it is a relevant financial
metric, it does not specifically evaluate the profitability of cloud services based on computing resources
utilized.
• Total Cost of Ownership (TCO)
o TCO refers to the total cost associated with owning and operating a particular asset or service,
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including both direct and indirect costs. While TCO is an important financial metric, it focuses on costs
rather than evaluating the revenue generated from computing resources.
• Revenue per Compute Unit (RPCU)
o RPCU measures the revenue generated from each unit of computing resources utilized. It helps
assess the profitability of cloud services by analyzing the revenue earned in relation to the resources
consumed.
• Cloud Cost Efficiency (CCE)
o CCE measures the cost-effectiveness of utilizing different cloud service providers by comparing the
costs incurred with the value generated. While it relates to costs and value, it does not specifically
measure the revenue generated from computing resources.
• Return on Investment (ROI)
o ROI measures the profitability of an investment by calculating the ratio of the net profit generated to the
initial investment. While ROI is a relevant financial metric, it does not specifically measure the revenue
generated from computing resources.
When evaluating the profitability of cloud services, the financial metric "Revenue per Compute Unit
(RPCU)" is used. RPCU measures the revenue generated from each unit of computing resources
utilized. By analyzing RPCU, organizations can assess the profitability of their cloud services based on
the revenue earned in relation to the resources consumed. This metric helps optimize resource
allocation, pricing strategies, and overall financial performance in cloud computing operations.