A company is considering migrating to the AWS Cloud and is assessing the financial impact. Which benefit specifically relates to economies of scale and may lead to cost savings as the company's cloud utilization increases?
The correct answer is 'Discounted pricing as service usage increases.' AWS employs a usage-based pricing model, where services may come with tiered pricing. This means that as a company utilizes more of a given service, the cost per unit can decrease, which is a direct benefit of economies of scale. The company pays less per unit as it consumes more, leading to cost savings. The other options provided are related to general cloud benefits but do not directly address economies of scale. 'Fixed monthly subscription regardless of usage' is incorrect as it implies a flat fee model not associated with variable usage. 'Uniform global pricing for services' is also incorrect since it refers to consistent pricing across regions rather than cost reduction from increased usage. 'One-time upfront investment in infrastructure' is incorrect because it describes a capital expenditure model typical of on-premises environments, which contrasts with the cloud's variable expense model.
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What does 'economies of scale' mean in the context of AWS Cloud services?
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What is tiered pricing in AWS, and how does it work?
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How does AWS's pay-as-you-go pricing differ from a fixed subscription model?
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AWS Cloud Practitioner CLF-C02
Cloud Concepts
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