Microsoft 365 FundamentalsDescribe cloud conceptsEasy
A small business is considering migrating its internal file storage to Microsoft 365. They are particularly interested in a solution that minimizes their upfront hardware investment and allows them to pay only for the storage they consume. Which cloud characteristic is primarily driving this decision?
- AHigh Availability
- BGeographic Distribution
- CElasticity
- DEconomies of Scale
Show answer & explanationAnswer & explanation
Correct answer: D. Economies of Scale
The primary characteristic driving the decision to minimize upfront hardware investment and pay only for consumed storage is the economies of scale offered by cloud providers. This allows providers to offer lower costs per unit than individual businesses could achieve.
Why the other options are wrong
- A. High Availability relates to uptime and resilience, not cost structure.
- B. Geographic Distribution relates to placing resources in different locations for performance or resilience, not cost structure.
- C. Elasticity refers to the ability to scale resources up or down rapidly, which is a benefit but not the primary driver for minimizing upfront investment and paying for consumption in this context.
Economies of Scale (Cloud)
The ability of cloud providers to offer services at a lower cost due to their massive infrastructure, shared resources, and efficient operations.
- Lower per-unit cost for resources.
- Achieved through massive data centers and shared infrastructure.
- Benefits passed on to customers as lower prices.
Memory trick: Cloud's Scale Saves Cash.