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Difficulty: EasyDefine the benefits of the AWS Cloud

A telehealth startup is launching a patient consultation portal. Instead of purchasing physical servers and securing dedicated data center space upfront, the company decides to host the application on AWS and pay only for the virtual resources it uses each month. Which of the following benefits of the AWS Cloud is directly demonstrated by this business decision?

  1. A
    Trading variable expense for capital expense
  2. Trading fixed expense for variable expenseAnswer
  3. C
    Trading elasticity for scalability to guarantee maximum capacity
  4. D
    Implementing a tightly coupled monolithic design to lower operational costs

Answer

Trading fixed expense for variable expense is the core economic benefit demonstrated because the company avoids upfront infrastructure investment and pays only for what they consume monthly.
Trading fixed expense for variable expense is correct because AWS allows customers to pay only for the computing resources they actually consume, eliminating the need to invest in physical servers and data centers before knowing how they will be used.

Step-by-Step Solution

1
Analyze the financial requirements of the startup in the scenario.
The startup wants to avoid upfront costs for physical servers and data centers, choosing instead to pay monthly based on resource usage.
Identifying the shift from fixed upfront hardware costs to flexible recurring costs defines the financial transition.
2
Match the transition to the defined benefits of the AWS Cloud.
Paying for resources as they are consumed on-demand aligns with the cloud benefit of trading fixed expense for variable expense.
Connecting the business decision directly to official AWS Cloud benefits guarantees a correct conceptual match.

Key Concept

Trading fixed expense for variable expense
Estimated Time:45s
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Define the benefits of the AWS Cloud

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