CLF-C02 Question 38
Single answerA startup is planning to migrate its on-premises infrastructure to AWS. They are concerned about managing costs as their business grows and experiences fluctuations in demand. Which of the following best demonstrates the advantage of AWS's cost structure compared to traditional on-premises infrastructure?
- A
AWS primarily uses fixed costs so businesses can predict expenses regardless of usage.
- B
AWS offers a variable cost model, allowing businesses to pay only for the resources they use.
- C
AWS requires significant upfront capital investment, similar to on-premises infrastructure.
- D
AWS provides a hybrid model with fixed costs for storage and variable costs for compute power.
Show answer and explanation
Correct answer: B
Explanation
AWS's cost model is primarily based on a pay-as-you-go approach, which means businesses only pay for the resources they consume. This eliminates the need for significant upfront capital investment and provides cost predictability and scalability, particularly useful for startups or businesses experiencing fluctuating demand. In contrast, traditional on-premises infrastructure often involves fixed costs and significant upfront expenses.
- A. Incorrect.
Incorrect: AWS does not primarily rely on fixed costs. Instead, it focuses on a pay-as-you-go model, which is based on actual resource usage.
- B. Correct.
Correct: AWS's variable cost model allows customers to pay only for what they use, offering flexibility and cost efficiency, especially during fluctuating demand.
- C. Incorrect.
Incorrect: This is not true. One of the key benefits of AWS is the elimination of significant upfront capital investment required by traditional on-premises infrastructure.
- D. Incorrect.
Incorrect: While AWS does offer different pricing models for various services, the primary value proposition revolves around its pay-as-you-go variable cost model rather than a hybrid model.