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Question

Difficulty: EasyDefine the benefits of the AWS Cloud

An online media company notices that its monthly AWS billing rates for data storage have periodically decreased over time, even though the company's own storage usage has remained constant. AWS is able to pass these savings on to customers due to the aggregated usage of hundreds of thousands of customers. Which benefit of the AWS Cloud does this scenario describe?

  1. A
    Trade fixed expense for variable expense
  2. B
    Tightly coupling services to simplify application architecture
  3. Benefit from massive economies of scaleAnswer
  4. D
    Stop guessing capacity

Answer

Benefit from massive economies of scale
The correct answer is the option indicating that the customer benefits from massive economies of scale. Because AWS aggregates usage from hundreds of thousands of customers, it can achieve higher economies of scale. This scale translates into savings that AWS passes back to customers in the form of lower pay-as-you-go prices.

Step-by-Step Solution

1
Analyze the business scenario described in the question stem.
The scenario focuses on general price drops passed down to customers because of AWS's aggregate usage from hundreds of thousands of customers.
To identify which cloud benefit allows AWS to offer lower unit rates as its customer base grows.
2
Compare the scenario details with the definition of AWS Cloud benefits.
The concept of passing savings from high-volume operations down to individual customers aligns exactly with 'Benefit from massive economies of scale'.
To select the correct option that matches the identified cloud benefit.

Key Concept

Benefit from massive economies of scale
Estimated Time:45s
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Define the benefits of the AWS Cloud

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