Which option is a benefit of the economies of scale based on the advantages of cloud computing?
The ability to trade variable expense for fixed expense
Increased speed and agility
Lower variable costs over fixed costs
Increased operational costs across data centers
Explanations:
Cloud computing allows businesses to shift from capital-heavy fixed expenses (such as purchasing hardware) to variable expenses (paying only for the resources used), but it does not necessarily trade a variable expense for a fixed expense.
While cloud computing offers increased speed and agility, this is more related to operational flexibility than economies of scale. Economies of scale focus on cost efficiency with scale.
Cloud computing enables lower variable costs through shared infrastructure across multiple clients, which helps in achieving economies of scale. As businesses scale, they can reduce costs per unit of resource consumption.
Cloud computing typically reduces operational costs due to its efficiency and economies of scale, rather than increasing them across data centers.
From my point of view, the answer is:
Lower variable costs over fixed costs