A wellness startup, FitPulse, is launching a new mobile workout application. Instead of purchasing physical servers and hosting them in a private data center, the company decides to build its backend on AWS to pay only for the compute resources it consumes on an hourly basis.
Which of the following economic benefits of the AWS Cloud does this decision directly represent?
- ATrading operating expenses for capital expenses to lower monthly billing costs
- BAdopting a monolithic architectural design to eliminate cloud operational overhead
- Trading capital expenses for operating expensesCevap
- DFocusing on vertical scalability instead of elasticity to maintain fixed server pricing
Cevap
Trading capital expenses for operating expenses
By utilizing AWS, the startup avoids large upfront investments in physical infrastructure (capital expenses) and instead pays for services as they are consumed (operating expenses). This model lowers the barrier to entry and aligns ongoing costs with usage.
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CapEx vs OpEx shift in cloud economics