A company migrated to the AWS Cloud. Now the company pays for services on an as-needed basis. Which advantage of cloud computing is the company benefiting from?

Question

Options

• AStop spending money running and maintaining data centers
• BIncrease speed and agility
• CGo global in minutes
• DTrade fixed expense for variable expense

• A
  2% (1)
• C
  4% (2)
• D
  94% (46)

Explanation

Option D is correct because paying "on an as-needed basis" is the definition of variable expense - the company only pays for what it consumes, replacing the old model of paying large upfront (fixed) costs for hardware and infrastructure before knowing if they'd actually need it.

Why the distractors are wrong:

• Option A (stop spending money on data centers) is a valid cloud benefit, but it describes cost elimination, not the pay-as-you-go pricing model described in the question.
• Option B (increase speed and agility) refers to how quickly developers can provision resources and experiment - not related to the billing/payment model.
• Option C (go global in minutes) refers to deploying infrastructure across AWS regions worldwide - again unrelated to how the company is charged.

Memory Tip: Look for billing/payment keywords in the question. Words like "pay as you go," "on-demand," "as-needed," or "only what you use" are strong signals pointing to "Trade fixed expense for variable expense." Think of it like switching from a gym annual membership (fixed) to paying per visit (variable).

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