Discover how economies of scale in AWS Cloud help companies achieve lower costs by leveraging aggregate usage across all users. Learn about this key benefit for the AWS Certified Cloud Practitioner CLF-C02 exam.
Table of Contents
Question
Which benefit of the AWS cloud helps companies to achieve lower usage costs due to the aggregate usage of all AWS users?
A. No need to guess capacity
B. Ability to go global in minutes
C. Economies of scale
D. Increased speed and agility
Answer
C. Economies of scale
Explanation
Economies of scale allow AWS to offer lower costs as a result of the aggregate usage of all AWS users. This benefit of the AWS Cloud enables companies to reduce their usage costs by leveraging the aggregated demand and shared infrastructure of AWS services.
Economies of scale refer to the cost advantages that arise as a result of increased operational scale. In the context of AWS, this means:
- Shared Infrastructure: AWS operates massive data centers that serve millions of customers worldwide. By pooling resources and sharing infrastructure, AWS can purchase hardware, software, and other resources in bulk at discounted rates. These savings are passed on to customers in the form of lower costs.
- Optimized Resource Utilization: AWS maximizes the use of its infrastructure through technologies like multi-tenancy and virtualization. This ensures that resources are not wasted, which helps reduce costs per user.
- Pay-as-You-Go Model: Customers only pay for the resources they use, avoiding upfront investments in hardware or over-provisioning. This model aligns with the economies of scale by allowing businesses to benefit from tiered pricing and reduced unit costs as their usage grows.
- Global Reach and Innovation: AWS’s global infrastructure and continuous innovation allow it to optimize operations further, reducing costs while maintaining high performance and reliability.
Why Not Other Options?
A. No Need to Guess Capacity: While this is a key benefit of the cloud, it focuses on eliminating over-provisioning or under-provisioning rather than reducing costs through aggregate usage.
B. Ability to Go Global in Minutes: This benefit emphasizes AWS’s global infrastructure for rapid deployment across regions but does not directly address cost reduction.
D. Increased Speed and Agility: This pertains to faster resource deployment and development cycles rather than cost savings through economies of scale.
Understanding economies of scale is crucial for the AWS Certified Cloud Practitioner CLF-C02 exam, as it highlights how AWS delivers cost efficiency to businesses by leveraging its vast scale and operational expertise.
Amazon AWS Certified Cloud Practitioner CLF-C02 certification exam practice question and answer (Q&A) dump with detail explanation and reference available free, helpful to pass the Amazon AWS Certified Cloud Practitioner CLF-C02 exam and earn Amazon AWS Certified Cloud Practitioner CLF-C02 certification.