Question #769
Which option highlights a cost-related advantage of cloud computing's economies of scale?
Reduction in capital expenditure through operational expenditure models
Enhanced scalability leading to faster resource deployment
Decreased variable costs compared to fixed infrastructure costs
Higher fixed expenses due to centralized data management
Explanation
Option C highlights how cloud computing's economies of scale lower variable costs (e.g., per-GB storage or per-hour compute costs) by pooling resources across millions of users. AWS's massive infrastructure allows bulk purchasing, optimized operations, and shared costs, which reduce per-customer expenses.
Why other options are incorrect:
- A: While OpEx models reduce upfront CapEx, this is a billing model benefit, not directly tied to economies of scale.
- B: Scalability improves agility but doesn't inherently lower costs via economies of scale.
- D: Cloud computing reduces fixed costs (e.g., no need to own data centers), making this option factually incorrect.
Key Point: Economies of scale in cloud computing specifically reduce variable costs through shared, large-scale infrastructure efficiencies.
Answer
The correct answer is: C