A company is planning to migrate its data processing infrastructure to the cloud to handle varying workloads efficiently and reduce costs. How would economies of scale primarily benefit the company after migrating to the cloud?
By migrating to the cloud, the company will no longer need to pay for any computing resources upfront, resulting in cost savings from eliminated capital expenditures.
The company can rely on the automated scaling features of the cloud provider which will entirely eliminate operational costs.
The company benefits from lower costs due to the shared infrastructure and massive scale operations of the cloud provider, leading to a reduction in the cost per unit.
The company's investment in in-house IT specialists for maintenance and operations can be redirected to other areas of business, entirely removing IT operational expenses.
Economies of scale in the cloud allow customers to benefit from the large-scale operations of cloud providers. Cloud providers such as AWS can purchase hardware at discounted rates and operate massive data centers efficiently, which in turn brings down the cost for consumers. Consuming resources as a service means the company pays only for what it uses, rather than investing in significant up-front capital expenditure for resources that may be underutilized. Leveraging sharing resources and infrastructure lowers the cost per unit for all cloud customers.
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AWS Cloud Practitioner CLF-C02
Cloud Concepts
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