"Benefit from massive economies of scale – By using cloud computing, you can achieve a lower variable cost than you can get on your own. Because usage from hundreds of thousands of customers is aggregated in the cloud, providers such as AWS can achieve higher economies of scale, which translates into lower pay as-you-go prices."
https://docs.aws.amazon.com/whitepapers/latest/aws-overview/six-advantages-of-cloud-computing.html#:~:text=Benefit%20from%20massive,you%2Dgo%20prices.
AWS demonstrates the cloud computing benefit of economies of scale. As a cloud service provider with a large customer base and high purchase volumes, AWS is able to achieve cost efficiencies through economies of scale. This means that AWS can negotiate better pricing with hardware and software vendors, optimize resource utilization, and spread infrastructure costs across a large customer base. These cost savings are then passed on to customers in the form of lower variable costs.
One of the ways AWS offers lower variable costs is through its pay-as-you-go pricing model. With this model, customers only pay for the resources they consume on an as-needed basis, without any upfront or long-term commitments. This allows customers to scale their usage up or down based on demand and only pay for what they actually use.
EoS translates to volume purchasing at a significantly reduced cost value. Even though A is correct, it is still an attribute under the economics of scale. D is the answer.
The correct answer is D. Economies of scale.
AWS (Amazon Web Services) can offer lower variable costs due to its ability to achieve economies of scale, which means that as the volume of purchases increases, the cost per unit decreases. This is because AWS is able to negotiate lower prices from suppliers, spread fixed costs across a larger customer base, and optimize its operations for efficiency. As a result, customers who use AWS services can benefit from lower costs, especially for large-scale deployments.
Thankful for your comments!!! My answer is D as well. I think they are intentionally making some wrong answers to start discussion and through discussions it will refresh our minds.
The correct answer is D. Economies of scale.
AWS has the ability to offer lower variable costs as a result of high purchase volumes, which demonstrates the benefit of economies of scale. Economies of scale refer to the reduction in unit costs that a company can achieve by increasing the scale of production. In the case of AWS, the company is able to negotiate lower prices for hardware and other resources by buying in large volumes, and it can pass those savings on to its customers in the form of lower prices for its cloud services.
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