AWS Cloud Practitioner CLF-C02 Practice Question
A multinational corporation is exploring the transition to cloud services and seeks to benefit from reduced costs due to provider scaling. As an advisor, how would you describe the effect of scaling on cost advantages offered by a major cloud service provider?
The service provider can decrease the cost per service unit for clients due to the fixed costs being spread over an increased output, leading to overall reduced service charges.
When a provider scales up its services, the operational costs diminish to the extent that the cloud services are provided to the clients at no charge.
Scaling enables the provider to solely utilize renewable energy sources, thus bringing down the operational expenditures and consequently the cost of services.
As the cloud service provider expands, operational costs per customer rise due to the additional infrastructure required, which in turn elevates service pricing.