Exams / CLF-C02 / Benefits of the AWS Cloud / Question 2
CLF-C02 practice question: Benefits of the AWS Cloud (2 of 4)
Cloud Concepts A free question from our original CLF-C02 practice exam. Try it, then open the answer to see why each option is right or wrong.
A finance team notices that AWS has lowered the prices of many of its services several times over the years. Which advantage of cloud computing best explains how AWS is able to do this?
Choose one answer.
- AA. Trading fixed expense for variable expense
- BB. Going global in minutes
- CC. Benefiting from massive economies of scale
- DD. Stopping guessing about capacity
Show the answer and explanation
Answer: C
- A. Wrong: This advantage describes how customers pay only for what they use instead of buying servers up front. It does not explain why the provider's prices fall.
- B. Wrong: This describes deploying to Regions around the world quickly. It is about reach, not about how prices are set.
- C. Right: Correct. Because usage from hundreds of thousands of customers is aggregated, AWS achieves economies of scale that it can pass on as lower pay-as-you-go prices.
- D. Wrong: This is about scaling up or down as needed instead of forecasting demand. It does not explain falling prices.
Explanation
Economies of scale are one of the six advantages of cloud computing. A cloud provider buys and runs infrastructure for a very large number of customers, so its cost per unit is lower than any single company could achieve, and those savings can be passed on as lower prices.
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