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Difficulty: EasyDefine the benefits of the AWS Cloud

A retail startup wants to launch a new e-commerce application. Instead of investing heavily in physical servers and building their own data centers before knowing how successful the application will be, they decide to deploy on AWS and pay only for the resources they consume. Which benefit of the AWS Cloud is this startup demonstrating?

  1. Trading capital expense for variable expenseAnswer
  2. B
    Trading variable expense for capital expense
  3. C
    Eliminating the need for scalability by running a tightly coupled monolithic design
  4. D
    Achieving elasticity by committing to a fixed, maximum-capacity server infrastructure upfront

Answer

Trading capital expense for variable expense
Trading capital expense for variable expense is the correct benefit. By using AWS, the startup avoids capital expenses (CapEx) associated with purchasing and maintaining physical servers. Instead, they pay for computing resources as variable expenses (OpEx) based on actual usage.

Step-by-Step Solution

1
Analyze the business scenario described in the stem.
The startup wants to avoid upfront infrastructure costs and instead pay incrementally based on usage.
This relates to the economic benefits of cloud computing.
2
Match the scenario to the official AWS Cloud benefits.
Paying on-demand for resources instead of investing in physical data centers upfront represents trading capital expenses (CapEx) for variable expenses (OpEx).
To identify which cloud benefit fits paying only for what is consumed without upfront investment.

Key Concept

Trading capital expense for variable expense is a key economic benefit of the AWS Cloud, enabling organizations to pay only for the resources they consume rather than investing heavily in physical data centers and servers upfront.
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Define the benefits of the AWS Cloud

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