AquaPure Utilities operates an on-premises data center where it recently purchased high-capacity servers to run a monthly water-quality simulation that lasts for 48 hours. During the rest of the month, these servers remain largely idle, yet the utility must continue to pay for power, cooling, and physical security. By migrating this simulation workload to AWS and paying only for the compute resources during the active 48-hour window, which concept of cloud economics is AquaPure Utilities primarily leveraging?
- ARehosting the workload to completely eliminate the operational costs of maintaining and patching application software
- Trading capital expense (CapEx) for variable operating expense (OpEx) to pay only for active resource consumptionAnswer
- CRelying on scalability to permanently increase baseline server capacity, thereby converting operational expenses into fixed capital assets
- DIncreasing capital expense (CapEx) by provisioning dedicated physical host servers in the cloud to eliminate variable operating costs
Answer
Trading capital expense (CapEx) for variable operating expense (OpEx) to pay only for active resource consumption
The correct answer is the trade-off of capital expense (CapEx) for variable operating expense (OpEx). By running the simulation on AWS, the utility avoids upfront server purchases and pays only for resources consumed during the 48-hour window.
Step-by-Step Solution
Key Concept
The transition from capital expenses (CapEx) to variable operational expenses (OpEx) in cloud economics.
Estimated Time:1m 30s