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Difficulty: MediumDefine the benefits of the AWS Cloud

A digital health startup is developing a mobile application to connect patients with doctors. The company wants to launch the service quickly without making significant upfront investments in physical servers or leasing data center facilities. Instead, they choose to host the application on AWS and pay only for the hourly compute resources they consume. Which benefit of the AWS Cloud is best illustrated by this scenario?

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

Answer

Trade fixed expense for variable expense
The correct answer is trading fixed expense for variable expense. By hosting the application on AWS and paying only for the hourly resources consumed, the startup avoids the significant upfront capital expenditures (fixed expenses) associated with buying physical servers and leasing data centers, substituting them with operating expenditures (variable expenses).

Step-by-Step Solution

1
Analyze the scenario details.
The startup is avoiding upfront physical hardware purchases and data center leases (fixed capital expenses) and is instead paying for compute time hourly as consumed (variable operating expenses).
Identifying the financial shift in the scenario helps map it to the correct AWS Cloud benefit.
2
Evaluate the 6 benefits of AWS Cloud against the scenario.
'Trade fixed expense for variable expense' directly describes paying only for resources consumed rather than investing in physical infrastructure beforehand.
Confirming which AWS Cloud benefit matches the operational and financial behavior of the startup.

Key Concept

Shifting from capital expenditures (CapEx) to operating expenditures (OpEx) by trading fixed infrastructure costs for variable cloud consumption costs.
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Define the benefits of the AWS Cloud

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