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In which ways does the AWS Cloud offer lower total cost of ownership (TCO) of computing resources than on-premises data centers? (Select TWO.)
A
AWS replaces upfront capital expenditures with pay-as-you-go costs
B
AWS is designed for high availability, which eliminates user downtime
C
AWS eliminates the need for on-premises IT staff
D
AWS uses economies of scale to continually reduce prices
E
AWS offers a single pricing model for Amazon EC2 instances
Explanation:
Correct Answers: A and D
Why A is correct:
AWS replaces the traditional capital expenditure (CapEx) model with operational expenditure (OpEx) through pay-as-you-go pricing
This eliminates large upfront investments in hardware and infrastructure
Organizations only pay for what they actually use
Why D is correct:
AWS benefits from massive economies of scale due to serving millions of customers globally
These economies of scale allow AWS to continually reduce prices for customers
AWS has reduced prices over 100 times since its inception
Why other options are incorrect:
B: While AWS offers high availability, it doesn't eliminate all user downtime - applications still need proper architecture for high availability
C: AWS doesn't eliminate the need for IT staff - organizations still need cloud engineers, architects, and administrators
E: AWS offers multiple pricing models for EC2 (On-Demand, Reserved Instances, Spot Instances, Savings Plans), not a single pricing model