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?
A commitment to purchase a fixed amount of computing capacity upfront guarantees a reduction in variable costs.
The company can leverage a pricing model based on usage, which reduces costs during periods of decreased demand for data processing.
By using reusable templates for resource provisioning, they can significantly lower their IT expenses.
Traditional software licensing provides the financial institution with the benefits of lower long-term costs due to up-front bulk purchasing.
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.
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AWS Cloud Practitioner CLF-C02
Cloud Concepts
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