A marketing company launches promotional websites that are only active for a few weeks at a time. Instead of purchasing physical servers to host these websites, the company hosts them on AWS and pays only for the resources consumed during the campaigns. Which of the following cloud economics benefits is demonstrated in this scenario?
- Trading upfront capital expenses for variable operating expensesAnswer
- BTrading variable operating expenses for upfront capital expenses
- CEliminating all operating expenses by using physical on-premises servers
- DUsing dynamic scaling to convert variable costs into capital expenses
Answer
Trading upfront capital expenses for variable operating expenses
The correct answer is correct because purchasing physical servers requires upfront investment, which is a capital expense (CapEx). Moving to AWS allows the company to pay only for resources consumed on an ongoing basis, shifting these costs to variable operating expenses (OpEx). This directly represents the benefit of trading capital expenses for variable expenses.
Step-by-Step Solution
Key Concept
Trading capital expenses for variable expenses
Estimated Time:45s