A boutique video production agency needs to expand its storage capacity for raw footage. Instead of purchasing expensive new physical storage hardware that requires upfront funding, the agency decides to use Amazon S3, allowing them to pay only for the storage they use on a monthly basis. Which concept of cloud economics does this spending shift demonstrate?
- Trading capital expenses (CapEx) for variable operating expenses (OpEx)Cevap
- BTrading variable operating expenses (OpEx) for capital expenses (CapEx)
- CUsing upfront payments to secure dedicated physical infrastructure
- DPrioritizing vertical scalability over elasticity
Cevap
Trading capital expenses (CapEx) for variable operating expenses (OpEx)
The correct answer is trading capital expenses (CapEx) for variable operating expenses (OpEx). Capital expenses refer to upfront investments in physical assets like servers and storage arrays. By migrating to Amazon S3, the boutique video production agency avoids these upfront costs and instead pays a variable operating expense based on their actual monthly consumption.
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Trading Capital Expenses for Variable Expenses (CapEx vs OpEx)
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