A financial consulting firm is preparing to migrate its client portal to the AWS Cloud. The firm wants to understand how the migration will impact its spending and operational model.
Which of the following statements regarding the cloud economics of this migration are correct? (Select TWO.)
- The migration allows the firm to trade upfront capital expenses (CapEx) for variable operating expenses (OpEx).Answer
- The total cost of ownership (TCO) is reduced by eliminating the cost of purchasing, powering, and maintaining physical servers.Answer
- CThe migration decreases operational expenses (OpEx) by converting all monthly cloud consumption costs into fixed capital expenses (CapEx).
- DThe firm will reduce costs by statically provisioning resources to meet the absolute maximum potential peak load at all times.
- EThe firm must rebuild the portal into a tightly coupled monolithic design to minimize cloud resource usage.
Answer
Migrating to AWS allows the firm to trade upfront capital expenses (CapEx) for variable operating expenses (OpEx), and reduces the total cost of ownership (TCO) by eliminating the cost of purchasing, powering, and maintaining physical servers.
Migrating to AWS allows organizations to convert their financial model from capital expenditures (CapEx) to operating expenditures (OpEx), as they pay only for resources consumed rather than investing upfront in physical hardware. Furthermore, total cost of ownership (TCO) is reduced because the firm no longer needs to pay for the purchase, power, cooling, or maintenance of physical servers and data centers.
Step-by-Step Solution
Key Concept
Shifting from CapEx to OpEx and reducing TCO through the elimination of physical infrastructure management.
Estimated Time:1m 0s