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Difficulty: MediumDefine the benefits of the AWS Cloud

A mobile food delivery startup is preparing to launch its service in a new metropolitan area. The company wants to deploy its application infrastructure without making upfront investments in hardware, choosing instead to pay variable operating expenses based on the volume of customer orders processed. Which benefit of the AWS Cloud is this startup utilizing?

  1. A
    Benefit from massive economies of scale
  2. B
    Trade variable expense for capital expense
  3. Trade capital expense for variable expenseAnswer
  4. D
    Stop guessing capacity

Answer

Trading capital expense for variable expense allows the startup to avoid upfront hardware investments and pay variable operating expenses based on actual resource usage.
Trading capital expense for variable expense is correct because it allows businesses to pay only for the resources they consume rather than investing heavily in physical data centers and servers before knowing how they will be used.

Step-by-Step Solution

1
Analyze the business requirements in the scenario.
The startup wants to avoid upfront investments in hardware and pay operating expenses based on usage.
This establishes the financial focus of the scenario.
2
Compare the requirements against the six benefits of the AWS Cloud.
Trading capital expense (CapEx) for variable expense (OpEx) directly matches the goal of eliminating upfront hardware payments in favor of utility-based billing.
To identify which cloud benefit specifically addresses this financial transition.

Key Concept

Trading capital expense for variable expense is a key cloud benefit where customers pay only for resources consumed, avoiding large upfront physical hardware costs.
Estimated Time:1m 0s
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Define the benefits of the AWS Cloud

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