In which ways does the AWS Cloud provide a lower total cost of ownership (TCO) for computing resources compared to on-premises data centers? (Choose two.)
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Correct answer: AWS replaces upfront capital expenditures with pay-as-you-go costs., AWS uses economies of scale to continually reduce prices..
Why this is the answer
AWS reduces TCO by converting upfront capital expenditures (CapEx) for hardware and infrastructure into operational expenditures (OpEx) through its pay-as-you-go model. This means you only pay for the resources you consume, avoiding large initial investments. Additionally, AWS leverages massive economies of scale due to its vast customer base and infrastructure, allowing it to continually lower prices over time and pass those savings on to users. While AWS is designed for high availability, it doesn't entirely eliminate user downtime, as application-level issues can still occur. AWS does not eliminate the need for IT staff, but rather shifts their focus from infrastructure maintenance to application development and management. AWS offers various pricing models for EC2 instances (On-Demand, Reserved Instances, Spot Instances), not a single one.
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