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 required for on-premises infrastructure with a pay-as-you-go pricing model, allowing organizations to only pay for the resources they actually use. This reduces the financial burden of initial investments in hardware and facilities, contributing to a lower total cost of ownership (TCO).
While AWS is designed for high availability, which helps minimize downtime, it does not directly contribute to TCO in terms of cost savings. Downtime affects productivity but is not a direct factor in the ownership cost comparison between AWS and on-premises solutions.
While AWS can reduce the need for some on-premises IT staff, it does not completely eliminate this need. Organizations may still require skilled staff to manage cloud resources, architecture, security, and compliance, which may not lead to significant cost reductions in TCO.
AWS leverages economies of scale, which allows them to reduce prices as they expand their infrastructure and customer base. This cost reduction can result in lower pricing for users, contributing to a lower TCO compared to maintaining an on-premises data center.
AWS offers multiple pricing models for Amazon EC2 instances, including on-demand, reserved, and spot instances. This variety allows customers to choose the pricing model that best fits their needs, rather than offering a single model, which does not specifically contribute to lower TCO.