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Answer: AWS replaces upfront capital expenditures with pay-as-you-go costs, AWS uses economies of scale to continually reduce prices
## 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
Author: Ritesh Yadav
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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