A medium-sized enterprise with cyclical business trends is assessing the financial implications of moving its sales application from a dedicated on-premises environment to AWS. Outlining the quarterly cost behavior after the migration, which statement best describes the expected change?
The quarterly costs would oscillate in direct proportion to the enterprise's application usage, exhibiting a variable cost structure aligned with their cyclical business trends.
Fixed costs will increase due to the necessity of higher upfront investment in cloud services, while variable costs will remain marginal depending on the data transfer rates.
Costs will become predominantly fixed as the cloud provider requires a constant fee for the maintained infrastructure, independent of the enterprise's sales cycle or application usage.
While quarterly costs will become more predictable, they will be composed of both fixed subscription fees for cloud services and variable costs from unforeseen spikes in application use.