VeritasGenomics runs high-compute DNA sequencing analysis. On-premises, they maintain a cluster of high-performance servers that is fully utilized for only three days each month when processing research runs. During the rest of the month, the hardware remains idle, though the company continues to pay for power, cooling, and data center space. Which of the following best describes the cloud economics concept that would allow VeritasGenomics to optimize these costs on AWS?
- AConverting variable operational expenses into fixed capital investments to guarantee resource availability.
- BProvisioning permanent, maximum-scale resources to support long-term volume growth without adjusting capacity dynamically.
- Transitioning from fixed capital investments to variable expenses that adjust based on compute utilization.Answer
- DRehosting the workload directly to AWS without modification to automatically eliminate all day-to-day administrative overhead.
Answer
Transitioning from fixed capital investments to variable expenses that adjust based on compute utilization.
The choice stating 'Transitioning from fixed capital investments to variable expenses that adjust based on compute utilization' is correct because AWS enables organizations to trade upfront infrastructure expenses (Capital Expenditures, or CapEx) for variable costs (Operating Expenditures, or OpEx). With elasticity, the organization can scale capacity down or turn resources off during the 27 idle days, paying only for the compute power actually consumed.
Step-by-Step Solution
Key Concept
Shifting from CapEx to OpEx and utilizing elasticity to align costs with demand.
Estimated Time:1m 30s