Question

Difficulty: MediumUnderstand concepts of cloud economics

QuickBite, a food delivery startup, is planning to migrate its order processing and delivery tracking application from an on-premises data center to the AWS Cloud. The application experiences significant, predictable traffic surges during lunch and dinner hours, but remains mostly idle during the night. Which of the following are direct economic benefits that QuickBite will realize by transitioning to AWS? (Select TWO.)

  1. The transition from upfront capital expenses (CapEx) to variable operating expenses (OpEx) that align costs directly with demand.Answer
  2. Cost savings achieved by using elasticity to dynamically scale resources down during overnight low-traffic periods.Answer
  3. C
    The elimination of operational expenses (OpEx) by purchasing and owning the physical server hardware deployed in AWS data centers.
  4. D
    Reduced billing complexity by maintaining constant, peak capacity at all times to ensure scalability without implementing elasticity.
  5. E
    The automatic conversion of their application from a monolithic structure to a microservices architecture during a standard lift-and-shift migration.

Answer

The transition from upfront capital expenses (CapEx) to variable operating expenses (OpEx) that align costs directly with demand, and cost savings achieved by using elasticity to dynamically scale resources down during overnight low-traffic periods.
The correct options are the transition from CapEx to OpEx and the cost savings from elasticity. Shifting to variable operating expenses allows the startup to pay only for active resources, avoiding large upfront capital expenses. Elasticity allows the application to scale down automatically during overnight low-traffic periods, minimizing cost when demand is low.

Step-by-Step Solution

1
Analyze the traffic pattern of the workload.
The application has highly variable but predictable demand, with spikes during meal hours and low usage at night.
Identifying demand variation helps apply the correct cost-optimization strategies.
2
Evaluate the cloud financial model.
AWS enables a shift from CapEx (upfront hardware costs) to OpEx (pay-as-you-go).
This shift is a primary economic benefit of the AWS Cloud.
3
Determine the impact of elasticity on cost.
Using elasticity to scale down compute resources when they are idle directly lowers the total cost of ownership (TCO).
Elasticity prevents the company from paying for unused idle capacity.

Key Concept

Cloud Economics: Shift from CapEx to OpEx and Cost Benefits of Elasticity
Estimated Time:1m 30s
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