Which of the following statements best explains how economies of scale in AWS Cloud help customers reduce their costs as their workloads grow?
Cost reductions from economies of scale are only available after customers sign a 10-year upfront commitment with AWS.
Customers must purchase AWS hardware in bulk themselves to receive discounted pricing.
Because AWS aggregates demand from millions of customers, it can purchase infrastructure in large volumes at lower prices and pass those savings on to customers.
Economies of scale only apply to workloads running in the same Availability Zone, so regional workloads are charged a premium.
Because AWS aggregates the usage of hundreds of thousands of customers, it can negotiate lower hardware and network prices and operate its infrastructure more efficiently. Those savings are passed on to customers through lower pay-as-you-go prices, so the cost per unit of compute, storage, or other resources generally decreases as customers consume more. The other options misstate how AWS pricing works: customers do not need to buy hardware in bulk, cost reductions are not limited to a single Availability Zone, and no multi-year upfront commitment is required to benefit from economies of scale.
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AWS Cloud Practitioner CLF-C02
Cloud Concepts
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