CLF-C02 Question 4
Single answerA startup is planning to migrate its on-premises infrastructure to AWS to reduce costs. They anticipate their application traffic will grow significantly over time. How does AWS help the startup achieve cost savings as their usage increases?
- A
By offering volume-based discounts as usage increases
- B
By locking customers into long-term contracts for lower pricing
- C
By scaling infrastructure automatically to match traffic demand
- D
By charging a flat rate regardless of usage levels
Show answer and explanation
Correct answer: A
Explanation
AWS achieves economies of scale by aggregating the usage of millions of customers, allowing them to lower costs and pass those savings on to customers. As a customer’s usage increases, they can benefit from volume-based discounts, enabling significant cost savings compared to traditional on-premises infrastructure.
- A. Correct.
AWS provides economies of scale by offering volume-based discounts as customers' usage increases, helping to reduce costs over time.
- B. Incorrect.
AWS does not require customers to sign long-term contracts to achieve cost savings; they offer flexibility through pay-as-you-go pricing and other models.
- C. Incorrect.
While AWS does provide the ability to scale infrastructure automatically, this feature is more related to operational efficiency rather than economies of scale.
- D. Incorrect.
AWS does not charge a flat rate regardless of usage; its pricing is based on a pay-as-you-go model, which aligns costs with usage levels.