A company is planning to move its data center to the cloud. The Chief Financial Officer (CFO) is evaluating the costs involved with the current on-premises setup versus the costs after migration. Which type of cost would most likely decrease as a result of migrating to the cloud?
Operational costs relating to software licensing for on-premises databases.
Capital expenditure for upgrading the on-premises hardware every few years.
Fixed costs, such as the cost of owning and maintaining data center hardware.
Variable costs, like electricity consumption that scales with usage.
After migrating to the cloud, variable costs typically increase, as cloud services are generally pay-as-you-go and scale up or down based on demand. However, fixed costs, such as the expenses associated with maintaining physical hardware and facilities, decrease because the cloud provider absorbs these expenses. This reduction is a primary financial benefit of cloud migration.
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AWS Cloud Practitioner CLF-C02
Cloud Concepts
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