What is the value proposition of AWS for this company?
Economy of scale
Pay-as-you-go pricing
Volume discounts
Cost optimization
Explanations:
Economy of scale refers to the cost advantage that arises with increased output. While AWS benefits from this, it does not directly address the company’s need to avoid long-term contracts and shift to variable costs.
Pay-as-you-go pricing allows the company to pay only for the resources it uses, aligning costs with actual consumption. This flexibility supports the goal of avoiding fixed costs and long-term commitments.
Volume discounts apply when purchasing large amounts of services or resources upfront, which contradicts the company’s desire to avoid long-term contracts and fixed costs.
Cost optimization involves managing and reducing costs effectively over time. While AWS can help in this area, it does not specifically address the company’s immediate goal of transitioning to variable costs without long-term commitments.