AWS Certified Cloud Practitioner — Question 98

In which ways does the AWS Cloud offer lower total cost of ownership (TCO) of computing resources than on-premises data centers? (Choose two.)

Answer options

• A. AWS replaces upfront capital expenditures with pay-as-you-go costs.
• B. AWS is designed for high availability, which eliminates user downtime.
• C. AWS eliminates the need for on-premises IT staff.
• D. AWS uses economies of scale to continually reduce prices.
• E. AWS offers a single pricing model for Amazon EC2 instances.

Correct answer: A, D

Explanation

The correct answers are A and D because AWS allows customers to shift from large upfront capital expenditures to a pay-as-you-go model, significantly lowering TCO. Additionally, AWS's economies of scale enable it to reduce pricing continually, which is not a benefit of on-premises data centers. Options B, C, and E do not directly relate to TCO reduction in the same way.