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CV0-003 · Question #789

Which of the following enables CSPs to offer unlimited capacity to customers?

The correct answer is C. Economies of scale. Economies of scale allow CSPs to build and operate infrastructure at a massive, aggregated level, reducing per-unit costs and enabling them to provision effectively unlimited capacity on demand for customers.

Cloud Architecture and Design

Question

Which of the following enables CSPs to offer unlimited capacity to customers?

Options

  • AAdequate budget
  • BGlobal data center distribution
  • CEconomies of scale
  • DAgile project management

How the community answered

(66 responses)
  • A
    8% (5)
  • B
    3% (2)
  • C
    88% (58)
  • D
    2% (1)

Why each option

Economies of scale allow CSPs to build and operate infrastructure at a massive, aggregated level, reducing per-unit costs and enabling them to provision effectively unlimited capacity on demand for customers.

AAdequate budget

Adequate budget is a prerequisite for building infrastructure but does not by itself create the operational model or cost structure that enables unlimited on-demand capacity for customers.

BGlobal data center distribution

Global data center distribution improves availability, fault tolerance, and latency but does not directly explain how unlimited capacity is economically feasible - it describes geography, not scale economics.

CEconomies of scaleCorrect

Cloud service providers aggregate compute, storage, and network demand across millions of customers, which justifies enormous capital investment in data centers that individual organizations could never fund alone. This aggregation lowers the marginal cost of each additional unit of capacity, allowing CSPs to absorb demand spikes and present a virtually unlimited resource pool to any single customer. The cost savings from operating at hyperscale are the economic foundation of the cloud's elastic capacity model.

DAgile project management

Agile project management is a software development methodology for iterative delivery and has no direct relationship to the physical or economic capacity of a cloud provider's infrastructure.

Concept tested: Cloud economies of scale enabling elastic capacity

Source: https://learn.microsoft.com/en-us/azure/well-architected/cost-optimization/principles

Topics

#economies of scale#CSP#cloud capacity#cloud benefits

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