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

Question

Options

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

• A
  93% (13)
• E
  7% (1)

Explanation

AWS Cloud TCO Advantages

Why A and D are correct: AWS eliminates large upfront capital expenditures (like buying servers and building data centers) by replacing them with a pay-as-you-go model, meaning you only pay for what you use. Additionally, because AWS serves millions of customers, it leverages economies of scale - purchasing hardware in massive volumes and passing those cost savings on to customers through regularly reduced pricing.

Why the distractors are wrong:

• B is incorrect because while AWS offers high availability options, it does not eliminate downtime - outages can still occur, and availability depends on how architectures are designed.
• C is incorrect because AWS reduces the need for certain IT tasks (like hardware maintenance), but businesses still require IT staff for cloud management, security, and architecture.
• E is incorrect because AWS actually offers multiple EC2 pricing models (On-Demand, Reserved, Spot, Savings Plans), not a single one - this variety helps reduce costs but isn't itself a TCO advantage.

Memory Tip: Think of the two "P's" - Pay-as-you-go (no upfront costs) and Price reductions (economies of scale). These are the core financial reasons AWS lowers TCO compared to owning your own data center.

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