A startup in the hospitality sector is launching a vacation rental booking application. The company wants to eliminate the need for upfront capital investments in physical servers and instead pay only for the compute resources they consume on a pay-as-you-go basis. Which AWS Cloud benefit is this startup leveraging, and what is its financial impact?
- ATrading variable expense for fixed expense, which shifts costs from operating expenses (OpEx) to capital expenses (CapEx).
- BIncreasing elasticity, which focuses on manually provisioning permanent infrastructure capacity to support long-term, static business growth.
- Trading fixed expense for variable expense, which shifts costs from capital expenses (CapEx) to operating expenses (OpEx).Answer
- DStop spending money running and maintaining data centers, which allows the customer to rent dedicated physical server racks owned by the customer inside AWS locations.
Answer
Trading fixed expense for variable expense, which shifts costs from capital expenses (CapEx) to operating expenses (OpEx).
The correct answer is trading fixed expense for variable expense, which shifts costs from capital expenses (CapEx) to operating expenses (OpEx). By using AWS, the company avoids the upfront capital investments associated with purchasing and maintaining physical servers (CapEx) and instead pays only for resources consumed as an ongoing operational cost (OpEx).
Step-by-Step Solution
Key Concept
Trading fixed expense for variable expense (CapEx vs. OpEx)
Estimated Time:1m 30s