Question

Difficulty: MediumUnderstand concepts of cloud economics

An agricultural technology firm, AgroSense, runs a crop monitoring system that processes data from thousands of soil sensors. The system requires high compute capacity during the three-month harvesting season but remains completely idle for the remaining nine months of the year. AgroSense decides to migrate this workload from an on-premises data center to AWS. Which of the following describes the primary cloud economics benefit AgroSense will achieve?

  1. A
    The ability to trade variable operating expenses for predictable capital expenses by provisioning maximum capacity upfront.
  2. B
    The ability to scale resources horizontally to handle long-term application growth without dynamically reducing capacity during idle periods.
  3. The ability to trade fixed capital expenses for variable operating expenses, paying only for the compute capacity utilized during the harvesting season.Answer
  4. D
    The ability to automatically minimize overall costs by rehosting the application to fully serverless architectures without any manual configuration changes.

Answer

The ability to trade fixed capital expenses for variable operating expenses, paying only for the compute capacity utilized during the harvesting season.
The option stating that AgroSense can trade fixed capital expenses for variable operating expenses is correct. On AWS, businesses pay only for resources when they are active (operating expenses or OpEx), eliminating the need to invest in physical hardware upfront (capital expenses or CapEx) that remains idle for nine months of the year.

Step-by-Step Solution

1
Analyze the workload characteristics and requirements.
The workload is highly seasonal, requiring high capacity for three months and zero capacity for the remaining nine months.
Understanding the usage pattern helps identify the most cost-effective hosting model.
2
Evaluate the financial impact of migrating to AWS.
On-premises hosting requires purchasing hardware to support peak demand (CapEx) which sits idle. AWS allows paying only for what is used (OpEx) through elasticity.
This aligns the cost directly with business demand, realizing the core cloud economics benefit of trading capital expenses for variable expenses.

Key Concept

Trading Capital Expenses for Operating Expenses
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