Learn how the massive scale of cloud computing helps businesses save on IT costs. Get key insights for the AWS Cloud Introduction Certification Exam.
Table of Contents
Question
How does the scale of cloud computing help you to save costs?
A. You do not have to invest in technology resources before using them.
B. You can quickly deploy applications to customers and provide them with low latency.
C. The aggregated cloud usage from a large number of customers results in lower pay-as-you-go prices.
D. Accessing services on-demand helps to prevent excess or limited capacity.
Answer
C. The aggregated cloud usage from a large number of customers results in lower pay-as-you-go prices.
Explanation
The correct response option is The aggregated cloud usage from a large number of customers results in lower pay-as-you-go prices. This answer describes how customers can benefit from massive economies of scale in cloud computing.
The other response options are incorrect because:
- Not having to invest in technology resources before using them relates to Trade upfront expense for variable expense.
- Accessing services on-demand to prevent excess or limited capacity relates to Stop guessing capacity.
- Quickly deploying applications to customers and providing them with low latency relates to Go global in minutes.
One of the key ways that the scale of cloud computing helps save costs is through the aggregation of usage across a large customer base. Major cloud providers like AWS have millions of customers using their services. By pooling this demand, cloud providers can purchase and operate massive amounts of IT infrastructure at much lower costs than any individual company could.
These economies of scale allow cloud providers to secure lower prices on everything from data center real estate to power to hardware to networking bandwidth. They can then pass a portion of these savings on to customers in the form of lower pay-as-you-go prices for on-demand services.
The more customers use a cloud provider’s services, the greater the economies of scale, resulting in incrementally lower unit costs over time. Individual businesses could never match the scale and efficiencies of these huge, global cloud operations.
So in summary, the aggregate demand from the sheer scale and number of customers using cloud services directly translates into cost savings through lower, use-based pricing. This is one of the primary economic advantages of the cloud computing model.
AWS Introduction to Cloud 101 EDC101v1 EN US KC M06 Final Assessment practice question and answer (Q&A) dump with detail explanation and reference available free, helpful to pass the AWS Introduction to Cloud 101 exam and earn AWS Introduction to Cloud 101 certification.