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Difficulty: MediumDefine the benefits of the AWS Cloud

An agricultural technology company wants to launch a new crop-monitoring application but has limited initial funding. Instead of purchasing physical servers and networking hardware upfront, the company decides to build the system on AWS and pay only for the computing resources they actually use. Which benefit of the AWS Cloud is directly demonstrated by this approach?

  1. Trading fixed expense for variable expenseAnswer
  2. B
    Trading variable expense for fixed expense
  3. C
    Stopping guessing capacity by scaling resources based on predicted future growth
  4. D
    Eliminating operational costs by deploying a monolithic application architecture

Answer

Trading fixed expense for variable expense
The correct answer is the choice describing the trade-off of fixed expenses for variable expenses. In cloud computing, you pay only for the resources you consume (a variable expense) instead of investing heavily in physical data centers and servers (a fixed capital expense) before you know how you are going to use them.

Step-by-Step Solution

1
Analyze the financial transition described in the scenario.
The company avoids paying upfront capital expenses (fixed cost) for physical hardware and instead pays for resources based on actual consumption (variable cost).
Identifying the shift from upfront capital expenditure to ongoing operational expenditure is key to selecting the correct AWS Cloud benefit.
2
Match this financial model with the official six advantages of cloud computing.
The scenario directly aligns with the cloud benefit defined as 'trading fixed expense for variable expense'.
This matches the AWS definition where businesses pay only for what they consume, allowing them to remain agile without significant upfront investments.

Key Concept

Trading fixed expense for variable expense (CapEx to OpEx)
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Define the benefits of the AWS Cloud

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