Question 1Cloud Concepts
After migrating, a company asks which part of its AWS spend behaves like a fixed cost rather than a variable one. Which of the following behaves that way?
- A.
A three-year All Upfront Reserved Instance bought for a steady workload
- B.
Data transferred out of a Region
- C.
On-Demand Amazon EC2 usage billed per second
- D.
Amazon S3 storage billed per GB-month
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Answer: A
A three-year All Upfront Reserved Instance is committed regardless of usage, so it behaves as a fixed cost.
- A. The commitment is owed for the whole term regardless of how much usage occurs, which is fixed-cost behaviour.
- B. Data transfer is charged per gigabyte moved, so it falls to zero when nothing is transferred.
- C. On-Demand usage is billed per second of running time and stops when the instance stops.
- D. Storage is charged per gigabyte-month, so deleting data reduces the charge; that is variable.