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Difficulty: EasyUnderstand concepts of cloud economics

A mobile game studio wants to launch a new multiplayer game. Instead of purchasing physical servers and hardware upfront in a traditional data center, the studio decides to host the game on AWS and pay for compute resources as they are consumed. Which of the following describes this financial shift?

  1. A
    Maximizing upfront capital investments to eliminate variable costs
  2. B
    Trading operating expenses (OpEx) for capital expenses (CapEx)
  3. Trading capital expenses (CapEx) for operating expenses (OpEx)Answer
  4. D
    Utilizing static scaling to eliminate the need for elasticity

Answer

Trading capital expenses (CapEx) for operating expenses (OpEx)
Trading capital expenses (CapEx) for operating expenses (OpEx) is correct because using AWS allows organizations to avoid physical hardware acquisition costs (CapEx) and instead pay for cloud resource usage as an operational expense (OpEx) based on consumption.

Step-by-Step Solution

1
Identify the initial investment model of the mobile game studio.
The studio is avoiding purchasing physical servers upfront (Capital Expenses/CapEx).
Understanding what type of expense is being eliminated is the first step in cloud economics.
2
Identify the new payment model after moving to AWS.
The studio pays for compute resources as they are consumed (Operating Expenses/OpEx).
Recognizing the nature of pay-as-you-go pricing as an ongoing operational cost.
3
Match this transition to the correct cloud economics concept.
The shift represents trading capital expenses (CapEx) for operating expenses (OpEx).
This is one of the core financial benefits of AWS cloud adoption.

Key Concept

Understanding the financial shift from Capital Expenses (CapEx) to Operating Expenses (OpEx) in cloud computing.
Estimated Time:45s
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Understand concepts of cloud economics

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