A local bakery chain plans to migrate its legacy inventory management application from on-premises servers to the AWS Cloud. By doing so, the company expects to eliminate the need to purchase physical hardware upfront.
Which two of the following represent the primary cloud economics benefits of this migration? (Select TWO.)
- Trading capital expenses (CapEx) for variable operating expenses (OpEx)Answer
- Benefiting from lower variable costs due to AWS's massive economies of scaleAnswer
- CIncreasing capital expenses (CapEx) to secure long-term ownership of physical infrastructure
- DUsing On-Demand EC2 instances to guarantee the lowest cost for long-term, predictable workloads
- ERehosting the application to automatically convert it into a fully serverless architecture
Answer
Trading capital expenses (CapEx) for variable operating expenses (OpEx) and benefiting from lower variable costs due to AWS's massive economies of scale
The correct choices explain that cloud economics allows a business to trade capital expenses (CapEx) for variable operating expenses (OpEx), reducing upfront costs. Furthermore, customers benefit from lower variable costs because AWS passes on savings achieved through its massive economies of scale.
Step-by-Step Solution
Key Concept
Cloud Economics and Cost Optimization Pillars
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