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Difficulty: MediumDefine the benefits of the AWS Cloud

A logistics software provider is explaining the financial advantages of cloud migration to its stakeholders. The provider highlights that because AWS aggregates usage from hundreds of thousands of customers, it can achieve higher purchasing power and pass these savings back to customers in the form of lower pay-as-you-go prices. Which benefit of the AWS Cloud is the provider describing?

  1. A
    Trade variable expense for capital expense
  2. B
    Stop guessing capacity through provisioned peak capacity modeling
  3. Benefit from massive economies of scaleAnswer
  4. D
    Minimize operational overhead by maintaining tightly coupled, monolithic infrastructure

Answer

Benefit from massive economies of scale
The correct answer is the option describing 'Benefit from massive economies of scale'. AWS can build and operate data centers more efficiently and purchase hardware in larger volumes due to the aggregated demand of hundreds of thousands of customers, passing these operational savings back to customers through regular price cuts.

Step-by-Step Solution

1
Analyze the financial savings mechanism presented in the scenario.
The scenario describes AWS aggregating customer usage to achieve higher purchasing power, which results in lower pay-as-you-go pricing for customers.
Understanding the core economic driver in the scenario allows matching it to one of the six benefits of cloud computing.
2
Evaluate the choices against official AWS Cloud benefits.
The benefit of achieving lower unit costs through aggregated customer volume matches the definition of 'Benefit from massive economies of scale'.
This identifies the correct conceptual benefit and distinguishes it from other concepts like trading capital expenses or capacity planning.

Key Concept

Define the benefits of the AWS Cloud
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Define the benefits of the AWS Cloud

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