AWS CLF-C02 - Practice Test #1
65 complete questions covering all AWS Certified Cloud Practitioner exam domains.
Which of the following is an economic advantage of cloud computing?
Category: Cloud Concepts
Explanation
Detailed breakdown of the correct answer
Cloud Concepts
One of the main economic benefits of AWS is the transformation of the traditional financial model.
Therefore, the correct answer is: Ability to trade capital expense for variable operational expense. In a traditional on-premises model, companies must make large upfront investments in hardware (CapEx) before using it. With AWS, you pay only for what you use when you use it (OpEx), converting fixed costs into variable ones and improving cash flow.
The option that says: Variable capital expenses (CapEx) instead of operational expenses (OpEx) is incorrect because it completely reverses the concept. CapEx are upfront capital expenses requiring upfront investment (buying physical servers, network equipment, facilities), while OpEx are day-to-day operational expenses. The cloud transforms CapEx into OpEx, not the other way around.
The option that says: Longer resource provisioning time is incorrect because it contradicts one of the cloud's main benefits. AWS offers virtually instant provisioning (seconds to minutes), while in traditional infrastructure it can take weeks or even months to provision and configure physical servers.
The option that says: Need to predict exact capacity months in advance is incorrect because cloud elasticity and scalability eliminate this need. You can scale resources up or down in real-time based on current demand, without needing to predict future capacity months in advance as in the traditional model.