A logistics startup is launching a new delivery tracking application. To keep initial costs low, the startup decides to host the application on AWS to avoid buying physical servers and instead pay a variable monthly rate based on their actual resource consumption. Which of the following terms describes this financial transition?
- AA transition from a monolithic architecture to a loosely coupled design
- A shift from capital expenses (CapEx) to operating expenses (OpEx)Answer
- CA shift from operating expenses (OpEx) to capital expenses (CapEx)
- DA transition from a migration strategy of rehosting to replatforming
Answer
A shift from capital expenses (CapEx) to operating expenses (OpEx)
The correct answer is the option stating a shift from capital expenses (CapEx) to operating expenses (OpEx). By choosing to host the application on AWS rather than purchasing physical hardware, the startup avoids upfront capital expenses and instead pays a variable monthly cost based on usage, which is classified as an operating expense.
Step-by-Step Solution
Key Concept
Shifting from upfront capital expenses (CapEx) to variable operating expenses (OpEx) is a major economic benefit of the AWS Cloud.