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Difficulty: MediumUnderstand concepts of cloud economics

EduClass Systems, an educational technology provider, is planning to migrate its virtual classroom platform from a private on-premises data center to AWS. The platform experiences high demand during school hours on weekdays, but has almost no traffic during nights, weekends, and summer breaks. Which TWO of the following describe the economic benefits of this migration for EduClass Systems? (Select TWO.)

  1. The company can shift from a Capital Expense (CapEx) model of purchasing and maintaining physical servers upfront to a variable Operating Expense (OpEx) model, paying only for the compute resources they consume.Answer
  2. The company can lower its Total Cost of Ownership (TCO) by using AWS elasticity to automatically scale compute resources down during off-peak hours and school holidays, avoiding payment for idle capacity.Answer
  3. C
    The company can eliminate all Operating Expenses (OpEx) by deploying all virtual classrooms using the AWS Free Tier, regardless of user volume.
  4. D
    The company can minimize costs by deploying On-Demand Instances for all virtual classroom servers, as this model provides the maximum possible volume discounts for predictable, steady-state workloads.
  5. E
    The company can achieve high elasticity by permanently pre-provisioning physical infrastructure in their on-premises data center to match the maximum peak capacity of the AWS Cloud.

Answer

Shifting from a Capital Expense (CapEx) model to a variable Operating Expense (OpEx) model, and lowering the Total Cost of Ownership (TCO) by using AWS elasticity to scale down resources during low-demand periods.
The correct options identify the shift from capital expenses (CapEx) to operating expenses (OpEx), allowing the company to pay only for consumed resources rather than upfront hardware investments, and the utilization of cloud elasticity to dynamically downscale resources during off-peak times to optimize Total Cost of Ownership (TCO).

Step-by-Step Solution

1
Analyze the existing infrastructure costs of the company.
The company currently incurs Capital Expenses (CapEx) by purchasing and managing physical servers upfront in a private data center.
This establishes the baseline cost model to compare against AWS cloud economics.
2
Identify the workload characteristics and traffic patterns.
The workload is highly variable with predictable off-peak periods (nights, weekends, holidays).
This points to elasticity as the primary driver for cost optimization.
3
Map AWS cloud economic concepts to solve the company's problem.
Migrating to AWS shifts costs to an Operating Expense (OpEx) model (pay-as-you-go) and allows the company to scale resources down when not in use (elasticity) to lower Total Cost of Ownership (TCO).
Matches the scenario to correct cloud business value propositions.

Key Concept

Cloud economics benefits: shifting CapEx to OpEx, and leveraging elasticity to optimize resource utilization and reduce Total Cost of Ownership (TCO).
Estimated Time:1m 30s
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Understand concepts of cloud economics

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