A digital marketing agency, PixelReach, is planning to migrate its workloads from a local colocation facility to the AWS Cloud. The company currently pays for physical hardware maintenance, power, cooling, and rack space. Which two of the following describe how cloud economics will change the company's financial model after migrating to AWS?
- The company transitions from upfront capital expenses (CapEx) to variable operating expenses (OpEx).Cevap
- The company reduces its total cost of ownership (TCO) by eliminating physical data center maintenance, power, and cooling costs.Cevap
- CThe company must pay a large upfront capital investment to secure default cloud hosting services.
- DThe company will experience increased fixed capital expenses (CapEx) since AWS owns and bills for physical servers.
- EThe company will have to pre-purchase maximum capacity to handle any unexpected traffic spikes.
Cevap
The company transitions from upfront capital expenses (CapEx) to variable operating expenses (OpEx), and the company reduces its total cost of ownership (TCO) by eliminating physical data center maintenance, power, and cooling costs.
Transitioning to AWS shifts the financial structure from capital expenses (CapEx) to variable operating expenses (OpEx) since there are no physical assets to buy. Additionally, Total Cost of Ownership (TCO) drops because the costs of power, cooling, physical space, and hardware upkeep are handled by AWS.
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Understanding how cloud economics shifts spending from CapEx to OpEx and lowers TCO by removing physical infrastructure maintenance.
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