A digital health startup is transitioning its core genomic sequencing pipelines to AWS. Previously, the company had to buy expensive high-performance computing (HPC) hardware upfront, which took months to write off as capital depreciation. On AWS, they pay only for the compute hours their pipelines consume, allowing them to fund ongoing development directly from their operational budget. However, their CFO notices that because AWS aggregates usage from hundreds of thousands of active customers, the pay-as-you-go pricing for these compute resources is significantly lower than what the startup could negotiate on their own. Which benefit of the AWS Cloud is primarily responsible for the lower per-unit resource cost observed by the CFO?
- Benefit from massive economies of scaleCevap
- BTrade capital expense for variable expense
- CStop guessing capacity
- DStop spending money running and maintaining data centers
Cevap
Benefit from massive economies of scale
The correct answer is the option stating 'Benefit from massive economies of scale'. By aggregating resource usage across hundreds of thousands of active customers, AWS can achieve higher economies of scale. This translates into lower pay-as-you-go prices for individual customers than they could achieve on their own.
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AWS Cloud economies of scale drive lower pricing through customer aggregation.