A company is considering migrating from their on-premises data center to the AWS Cloud. Which of the following represents the primary economic advantage of moving to the cloud?
Direct performance improvement of applications
Transforming capital expenditure to variable costs
Extended global reach of services
Improvement in operational efficiency
The primary economic advantage of moving to the cloud is transforming capital expenditure (CapEx) to variable costs. In an on-premises environment, companies typically invest in hardware and data centers upfront, which is a CapEx. When they move to the AWS Cloud, they pay only for what they use, converting those large, upfront expenses into smaller, variable costs. The answer about operational efficiency, while a benefit, is not primarily an economic advantage. Similarly, while a company may experience a performance improvement, this is not the primary economic advantage. Global reach is a strategic benefit rather than a direct economic one.
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