How do large cloud service providers like AWS enable organizations to reduce their expenses per unit by serving a vast clientele?
By imposing a uniform pricing model for all consumers, regardless of their consumption or scale.
By removing all variable costs and providing a fixed cost model for cloud resources.
By utilizing extensive infrastructure to distribute operational expenses across a broader customer base, which reduces the expense per unit for these services.
By automatically managing resource allocation and usage without the need for consumer intervention.
Large cloud service providers like AWS operate massive infrastructures that serve an extensive customer base, which allows them to achieve economies of scale. By purchasing hardware in bulk and distributing operational expenses over many consumers, the cost per unit for services is reduced. These savings are then passed on to customers through lower pay-as-you-go prices. The incorrect options describe concepts that are either opposite to how AWS pricing works (like uniform or fixed-cost models) or describe different benefits, such as managed services.
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What does 'economies of scale' mean in the context of cloud services?
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How does AWS pricing work, and why is it considered pay-as-you-go?
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Why doesn't AWS use a fixed-cost model for its services?
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AWS Cloud Practitioner CLF-C02
Cloud Concepts
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