How do large cloud service providers enable organizations to reduce their expenses per unit by serving a vast clientele?
By mandating a minimum resource usage policy to ensure optimal cost distribution.
By automatically managing resource allocation and usage without the need for consumer intervention.
By removing all variable costs and providing a fixed cost model for cloud resources.
By imposing a uniform pricing model for all consumers, regardless of their consumption or scale.
By offering services free of charge, thereby eliminating direct costs for the consumer.
By utilizing extensive infrastructure to distribute operational expenses across a broader customer base, which reduces the expense per unit for these services.
Large cloud service providers, like the one in question, operate massive infrastructures that accommodate a diverse and extensive customer base. Due to their size, these providers benefit from bulk purchasing and streamlined operations, leading to a reduction in cost per unit as the infrastructure and operational costs are distributed over more consumers. This characteristic of spreading costs to achieve lower expense per unit is referred to as economies of scale.
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AWS Cloud Practitioner CLF-C02
Cloud Concepts
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