Which statement best describes the financial benefit of moving from on-premises servers to AWS?
A.Eliminates all costs
Cloud reduces upfront cost — it doesn't eliminate spending.
B.Converts large upfront capital expenses into variable operational expenses that scale with usage
Correct. Trade fixed capital expense for variable operating expense.
C.Guarantees lower cost for every workload
Poorly managed cloud can cost more — no guarantee.
D.Removes the need for any IT staff
Cloud shifts work, doesn't eliminate the need for engineers.
Why this answer
Cloud's core economic shift is CapEx → OpEx: no upfront hardware purchases; you pay for what you use and can scale down when demand falls. It doesn't guarantee universal savings — rightsizing still matters.
Correct answer: B · Last reviewed 2026-10-26
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