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Difficulty: EasyDefine the benefits of the AWS Cloud

A logistics company migrates its package tracking systems to AWS. Over time, the company notices that AWS frequently lowers its service pricing due to the collective resource usage of millions of customers. Which benefit of the AWS Cloud is directly demonstrated by these price reductions?

  1. Benefit from massive economies of scaleAnswer
  2. B
    Trading variable expense for capital expense
  3. C
    Increasing elasticity to eliminate the need for scalability
  4. D
    Maximizing the tight coupling of monolithic systems

Answer

Benefit from massive economies of scale
The correct option is the one stating 'Benefit from massive economies of scale'. In AWS, the collective usage of millions of customers allows the cloud provider to achieve higher economies of scale. These savings are passed on to customers in the form of lower pay-as-you-go pricing.

Step-by-Step Solution

1
Analyze the business scenario described in the stem.
The scenario highlights a reduction in service pricing resulting from the aggregate usage of millions of customers on the AWS platform.
To identify which of the six AWS Cloud benefits corresponds to price reductions driven by high customer volume.
2
Match the scenario results with the official AWS Cloud benefits.
The benefit defined as achieving lower pay-as-you-go prices due to the aggregate usage of hundreds of thousands of customers is 'Benefit from massive economies of scale'.
To select the correct benefit that matches the mechanism of volume-based price reductions.

Key Concept

Massive economies of scale allow AWS to lower prices for customers due to high aggregate usage.
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Define the benefits of the AWS Cloud

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