An automotive manufacturer is designing a telematics system to gather diagnostic data from connected test vehicles. The data transmission is highly irregular, peaking during daily test runs and dropping to zero overnight. The company wants to avoid purchasing dedicated physical servers that would remain idle during non-test hours, preferring a model where they pay only for the compute resources consumed during active tests. Which benefit of the AWS Cloud is directly demonstrated by this approach?
- Trading capital expense for variable expenseAnswer
- BTrading variable expense for capital expense
- CIncreasing elasticity by provisioning static maximum capacity
- DEliminating operational costs by deploying a monolithic database architecture
Answer
Trading capital expense for variable expense
The correct answer is trading capital expense for variable expense. By choosing to pay only for the compute resources consumed during active tests rather than buying physical servers in advance, the automotive manufacturer avoids capital expenditures (CapEx) and adopts a pay-as-you-go variable expense (OpEx) model.
Step-by-Step Solution
Key Concept
AWS Cloud Benefit: Trading capital expense for variable expense