An online tutoring company is migrating its student portal to AWS to reduce overall infrastructure costs. Which TWO of the following statements correctly describe the economic benefits of this migration?
- Replacing upfront capital expenses with variable operating expenses that scale with usageAnswer
- Paying only for the resources that are actually consumed, reducing waste from idle capacityAnswer
- CIncreasing upfront capital expenses to completely eliminate variable operating expenses
- DCommitting to fixed, long-term contracts for all cloud services to ensure predictability in billing
- EOverprovisioning resources permanently to ensure the system can handle future growth without scaling
Answer
The correct options are the statements explaining that migrating to AWS replaces upfront capital expenses with variable operating expenses, and that you pay only for the resources that are actually consumed, which reduces waste from idle capacity.
Migrating to AWS provides significant economic benefits by replacing upfront capital expenses (such as purchasing physical hardware) with variable operating expenses that are paid based on usage. Furthermore, AWS enables a pay-as-you-go model where organizations pay only for the resources they consume, eliminating the waste associated with paying for idle, overprovisioned capacity.
Step-by-Step Solution
Key Concept
AWS cloud economics allows organizations to replace upfront capital expenses (CapEx) with variable operating expenses (OpEx) and reduce waste by paying only for active resource consumption rather than idle capacity.