Question

Difficulty: MediumUnderstand concepts of cloud economics

A smart-home technology company is migrating its device telemetry processing system to the AWS Cloud. The workload experiences significant demand fluctuations, with peak traffic occurring in the morning and evening, and near-zero activity overnight. Which of the following describe the primary cloud economic benefits of this migration? (Select TWO.)

  1. The capability to dynamically scale resources to match actual hourly demand, minimizing cost during low-activity periods.Answer
  2. B
    The utilization of standard On-Demand Instances to achieve the lowest possible long-term pricing for baseline workloads.
  3. The transition from upfront capital expenditures (CapEx) to variable operating expenditures (OpEx) linked directly to resource consumption.Answer
  4. D
    The ability to leverage Amazon EC2 Dedicated Hosts to eliminate all operating expenses (OpEx) for compute infrastructure.
  5. E
    The reduction of the customer's operational overhead by transferring guest operating system patching responsibility to AWS.

Answer

The correct answers are the capability to dynamically scale resources to match actual hourly demand, and the transition from upfront capital expenditures (CapEx) to variable operating expenditures (OpEx).
The correct options reflect the main economic benefits of AWS: elasticity and cost model shifting. Elasticity enables scaling resources up or down dynamically to prevent over-provisioning costs during off-peak hours. The cost shift changes the spending structure from capital expenses (CapEx) to operating expenses (OpEx), allowing the company to pay only for active resources.

Step-by-Step Solution

1
Analyze the workload's resource usage pattern over a 24-hour cycle.
The workload has high peaks during morning/evening and near-zero usage overnight, highlighting a need for resource elasticity.
Determining the workload's variability helps identify how cloud elasticity avoids the cost of idle on-premises hardware.
2
Evaluate the financial implications of shifting infrastructure from an on-premises data center to the pay-as-you-go cloud model.
The company moves from buying physical servers upfront (CapEx) to paying monthly based on consumption (OpEx).
Trading upfront capital expense for variable operational expense is a core economic advantage of the AWS Cloud.

Key Concept

Understanding cloud economics principles, particularly the cost benefits of elasticity and the shift from capital expenses (CapEx) to operational expenses (OpEx).
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