A financial institution is evaluating the potential cost benefits of moving their data analytics workloads from an on-premises solution to the AWS Cloud. With fluctuating data processing requirements throughout the fiscal year, what cost-related advantage does AWS Cloud offer that would be more challenging with their current on-premises setup?
The company can leverage a pricing model based on usage, which reduces costs during periods of decreased demand for data processing.
Traditional software licensing provides the financial institution with the benefits of lower long-term costs due to up-front bulk purchasing.
By using reusable templates for resource provisioning, they can significantly lower their IT expenses.
A commitment to purchase a fixed amount of computing capacity upfront guarantees a reduction in variable costs.
The correct answer reflects the pay-as-you-go pricing model of AWS, which aligns with variable workloads by providing a method to match cost with actual consumption. Unlike the fixed costs associated with on-premises infrastructure, where resources may be underutilized during periods of low demand, AWS allows the financial institution to scale their resources down and reduce costs. Traditional licensing often involves up-front costs and lacks the flexibility provided by AWS's consumption-based pricing. Meanwhile, reusable templates primarily aid in standardizing and automating deployment, but do not directly affect cost variability and management the way on-demand pricing does.
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 is the pay-as-you-go pricing model in AWS?
Open an interactive chat with Bash
How does AWS's scalability compare to on-premises infrastructure?
Open an interactive chat with Bash
What are some key features for cost management in AWS?
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 .