What is the concept of 'economies of scale' in cloud computing?

Answer options:

The ability to automatically scale resources based on user demand.

Cloud providers can offer lower costs because they purchase and operate hardware on a massive scale.

The process of deploying applications to multiple geographic regions.

The shift from Capital Expenditure (CapEx) to Operational Expenditure (OpEx).

How to approach this question

Think about why buying in bulk makes things cheaper.

Full Answer

B.Cloud providers can offer lower costs because they purchase and operate hardware on a massive scale.✓ Correct

Economies of scale is the ability to do things more efficiently or at a lower cost per unit when operating at a larger scale. Cloud providers like Microsoft purchase hardware in massive quantities, allowing them to pass those cost savings on to customers.

Common mistakes

Confusing economies of scale with elasticity (scaling resources).

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Practice the full Azure Fundamentals AZ-900 Practice Exam 3

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What is the concept of 'economies of scale' in cloud computing?

How to approach this question

Full Answer

Common mistakes

Practice the full Azure Fundamentals AZ-900 Practice Exam 3

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