Explantation for each answer:
• Average Revenue per User (ARPU)
o ARPU measures the average revenue generated per customer over a specific period. It helps
organizations understand the revenue generation capabilities and the value derived from each customer
in cloud computing operations.
• Total Cost of Ownership (TCO)
o TCO refers to the total cost associated with owning and operating a particular asset or service,
including both direct and indirect costs. While it is an important financial metric, it does not provide
insights into the average revenue generated per customer.
• Cost per Compute Unit (CPCU)
o CPCU measures the cost incurred for each unit of computing resources utilized. While it relates to
cost, it does not provide insights into the average revenue generated per customer.
• Revenue per Compute Unit (RPCU)
o RPCU measures the average revenue generated by each unit of computing resources utilized. While it
is a relevant financial metric, it does not specifically provide insights into the average revenue generated
per customer.
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• 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 provide insights into the average
revenue generated per customer.
When analyzing the financial performance of cloud computing operations, the financial metric "Average
Revenue per User (ARPU)" is used to measure the average revenue generated per customer over a
specific period. ARPU helps organizations assess the revenue generation capabilities and the value
derived from each customer.
By monitoring ARPU, organizations can make informed decisions regarding pricing strategies, customer
acquisition, and retention efforts to maximize revenue and enhance overall financial performance in
cloud computing operations.