A financial technology company is migrating its application workloads to AWS. The Chief Financial Officer (CFO) wants to transition from paying large, upfront costs for physical hardware that depreciates over time to a pay-as-you-go model where expenses align directly with real-time resource consumption. Which benefit of the AWS Cloud is the CFO referring to?
- Trading capital expense for variable expenseCevap
- BTrading variable expense for capital expense
- CStopping guessing capacity
- DBenefiting from massive economies of scale
Cevap
Trading capital expense for variable expense
The benefit of trading capital expense for variable expense is demonstrated when a company moves from upfront hardware investments (Capital Expenditure, or CapEx) to a pay-as-you-go utility model (Operating Expenditure, or OpEx). This allows organizations to pay only for the resources they consume.
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Trading capital expense for variable expense allows businesses to pay only for the resources they consume, shifting upfront hardware investments to ongoing operational costs.
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