A smart-home IoT provider manages separate AWS accounts for its device telemetry backend, customer database, and mobile application services. The finance department wants to consolidate billing for these accounts under a single AWS organization to optimize costs. Which of the following is a direct benefit of utilizing consolidated billing in AWS Organizations for this scenario?
- The combined usage across all member accounts is aggregated to qualify for volume pricing discounts on services such as Amazon S3.Answer
- BThe management account can use Service Control Policies (SCPs) to establish and enforce maximum monthly spending limits in USD for each member account.
- CThe credentials of the management account's root user are automatically distributed to member accounts to simplify resource administration.
- DConsolidating accounts shifts the overall AWS infrastructure spending from an operating expense (OpEx) model to a capital expense (CapEx) model.
Answer
The combined usage across all member accounts is aggregated to qualify for volume pricing discounts on services such as Amazon S3.
The correct answer is correct because AWS Organizations aggregates the usage from all member accounts in the organization, enabling the combined entity to qualify for volume tier discounts (such as S3 storage tier pricing or volume data transfer discounts) faster than individual standalone accounts.
Step-by-Step Solution
Key Concept
Consolidated Billing and Volume Pricing in AWS Organizations
Estimated Time:1m 30s