In which ways does the AWS Cloud offer lower total cost of ownership (TCO) of computing resources than on-premises data centers?
(Choose two.)
AWS replaces upfront capital expenditures with pay-as-you-go costs.
AWS is designed for high availability, which eliminates user downtime.
AWS eliminates the need for on-premises IT staff.
AWS uses economies of scale to continually reduce prices.
AWS offers a single pricing model for Amazon EC2 instances.
Explanations:
AWS replaces upfront capital expenditures associated with purchasing and maintaining hardware in on-premises data centers with a pay-as-you-go pricing model. This approach allows organizations to only pay for the resources they use, which can lead to significant cost savings over time.
While AWS is designed for high availability, this does not directly relate to TCO. High availability can reduce downtime costs but does not eliminate it completely, as costs related to downtime can still exist in cloud environments depending on service level agreements (SLAs) and configuration.
AWS does not eliminate the need for IT staff; rather, it shifts the skills required. Organizations may still need IT staff to manage cloud resources, although the roles may change from hardware maintenance to cloud resource management and optimization.
AWS benefits from economies of scale, allowing it to offer lower prices to customers as demand increases. This can lead to a lower total cost of ownership compared to on-premises data centers, where costs can be higher due to less purchasing power and inefficiencies.
AWS offers various pricing models for Amazon EC2 instances, including on-demand, reserved, and spot instances. The variety of pricing options allows customers to choose the model that best fits their needs, rather than a single pricing model, which does not contribute to lower TCO.