A business is contemplating the transition of their on-premises data-processing facilities to a cloud service provider. Which advantage would this shift offer in terms of the company's financial investment in IT infrastructure?
Shifting to the vendor's infrastructure converts all costs associated with processing operations into fixed costs.
Securing reserved instances for all compute resources is the primary method to attain cost reduction.
The business would benefit from reduced capital expenses due to a consumption-based billing approach.
The predominant financial benefit comes from adopting a licensing model that is predicated on the number of users.
The primary financial advantage is that moving to the cloud reduces upfront capital expenditures on physical hardware because billing is based on actual resource consumption. This pay-as-you-go model converts large capital expenses into variable operating expenses, aligning costs with demand. By contrast, fixed-cost models can lead to overprovisioning, per-user licensing does not capture true usage savings, and reserved instances-while discounted-still require a usage commitment or upfront payment, so they do not deliver the same level of immediate financial flexibility as on-demand pricing.
Ask Bash
Bash is our AI bot, trained to help you pass your exam. AI Generated Content may display inaccurate information, always double-check anything important.
What does 'consumption-based billing approach' mean in the cloud computing context?
Open an interactive chat with Bash
How does shifting to the cloud reduce capital expenditures?
Open an interactive chat with Bash
Why are reserved instances not the same as on-demand, consumption-based pricing?
Open an interactive chat with Bash
AWS Cloud Practitioner CLF-C02
Cloud Concepts
Your Score:
Report Issue
Bash, the Crucial Exams Chat Bot
AI Bot
Loading...
Loading...
Loading...
Pass with Confidence.
IT & Cybersecurity Package
You have hit the limits of our free tier, become a Premium Member today for unlimited access.
Military, Healthcare worker, Gov. employee or Teacher? See if you qualify for a Community Discount.
Monthly
$19.99
$19.99/mo
Billed monthly, Cancel any time.
3 Month Pass
$44.99
$14.99/mo
One time purchase of $44.99, Does not auto-renew.
MOST POPULAR
Annual Pass
$119.99
$9.99/mo
One time purchase of $119.99, Does not auto-renew.
BEST DEAL
Lifetime Pass
$189.99
One time purchase, Good for life.
What You Get
All IT & Cybersecurity Package plans include the following perks and exams .