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Zorluk: Çok zorUnderstand concepts of cloud economics

An enterprise runs a legacy monolithic application on-premises. The infrastructure costs 500,000annuallyinhardwaredepreciation(capitalexpense),500,000 annually in hardware depreciation (capital expense), 100,000 in data center power and cooling, and $200,000 in dedicated system administration salaries. The application's utilization is highly variable, requiring 80% of total capacity during a 3-month holiday peak, but dropping to just 10% during the remaining 9 months of the year. The company plans to migrate this application to AWS and re-architect it using Amazon EC2 Auto Scaling and Amazon Aurora. Which of the following best describes the primary economic shift and driver that will yield the greatest Total Cost of Ownership (TCO) reduction for this seasonal workload?

  1. Shifting from a capital expense (CapEx) model with fixed capacity to an operating expense (OpEx) model, leveraging elasticity to dynamically scale resources to match the seasonal demand variation, thereby eliminating idle capacity costs during off-peak months.Cevap
  2. B
    Increasing capital expenses (CapEx) to acquire permanent AWS cloud infrastructure assets, which converts the variable operational costs of power and cooling into predictable long-term depreciable assets.
  3. C
    Achieving high scalability by pre-provisioning AWS resources at 80% peak capacity year-round, which converts the operational staff costs into fixed capital expenses while ensuring performance.
  4. D
    Rehosting the monolithic architecture directly without modifications to automatically convert all system administration payroll costs into AWS-managed software-as-a-service operational expenses.

Cevap

Shifting from a capital expense (CapEx) model with fixed capacity to an operating expense (OpEx) model, leveraging elasticity to dynamically scale resources to match the seasonal demand variation, thereby eliminating idle capacity costs during off-peak months.
The correct option correctly identifies that the primary financial driver is shifting from a Capital Expenditures (CapEx) model to an Operating Expenditures (OpEx) model, combined with leveraging AWS elasticity to dynamically scale down capacity during off-peak times. This directly minimizes the total cost of ownership by eliminating idle resource waste.

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1
Analyze the on-premises cost structure and utilization patterns.
The on-premises environment uses a capital expense (CapEx) model with high fixed costs ($500,000 hardware depreciation) sized for peak capacity, resulting in 90% idle capacity for 9 months of the year.
To calculate the potential savings of cloud migration, we must first understand the baseline expenditures and the waste patterns of the legacy infrastructure.
2
Identify the primary economic shift when migrating to AWS.
The company shifts from a CapEx model (upfront hardware investments) to an operating expense (OpEx) model, where they pay only for running resources on a variable basis.
Recognizing the shift from CapEx to OpEx is fundamental to understanding AWS cloud economics.
3
Evaluate the role of elasticity in reducing the Total Cost of Ownership (TCO).
Elasticity allows the application to automatically scale in/out using Amazon EC2 Auto Scaling, meaning the company only pays for 80% capacity during the 3-month peak, and drops to 10% capacity for the other 9 months.
Matching supply to demand directly eliminates the cost of idle resources, which is the main source of waste in seasonal on-premises environments.
4
Synthesize the options to select the correct driver.
The option advocating the shift from CapEx to OpEx coupled with elasticity to eliminate off-peak idle costs represents the correct cloud economic principle.
This option correctly applies both the CapEx-to-OpEx shift and the concept of elasticity to address the seasonal business scenario.

Anahtar Kavram

The economic benefits of shifting from Capital Expenditures (CapEx) to Operating Expenditures (OpEx) and utilizing elasticity to match capacity with demand.
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Understand concepts of cloud economics

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