Cloud Foundations (D282)

Correct Answer

 A. The ability to scale resources up or down and only pay for what you use

Explanation

Elasticity in cloud computing refers to the ability to dynamically scale computing resources up or down as needed, and only pay for what is used. This flexibility ensures that companies are not paying for idle resources and can adjust capacity based on workload demands, making cloud computing more efficient and cost-effective.

Why other options are wrong

B. The ability for a system to recover from the failure of a single component

This refers to fault tolerance or high availability, not elasticity. Fault tolerance ensures systems remain functional even if one component fails, whereas elasticity is about scaling resources based on demand.

C. A flexible model of code development that results in faster deployment times

This describes Agile or DevOps practices, not elasticity in the cloud. Elasticity is focused on the scaling of infrastructure resources, not the speed of code development or deployment.

D. A pricing model that allows upfront payments and term commitments to reduce cost

This describes Reserved Instances, a specific pricing model in cloud computing. Elasticity, on the other hand, is about adjusting resource capacity according to demand, not about pricing models.

Correct Answer

B. The aggregated cloud usage from a large number of customers results in lower pay-as-you-go prices.

Explanation

Cloud providers achieve economies of scale by pooling resources and serving many customers. This aggregation of demand allows cloud providers to offer lower prices on a pay-as-you-go basis. With many customers sharing the same infrastructure, the costs are distributed, which leads to significant cost savings for individual users.

Why other options are wrong

A. You do not have to invest in technology resources before using them.

While it is true that cloud computing eliminates the need for upfront investment in physical infrastructure, this is not the primary way in which cloud computing saves costs. The main cost-saving feature is the ability to leverage shared infrastructure and pay only for what you use.

C. Accessing services on-demand helps to prevent excess or limited capacity.

On-demand access allows for efficient use of resources, but the main cost-saving benefit comes from shared infrastructure. The ability to scale resources based on demand does contribute to avoiding over-provisioning but is secondary to the overall cost-saving model driven by economies of scale.

D. You can quickly deploy applications to customers and provide them with low latency

While cloud computing can reduce deployment times and improve latency, these are not directly related to cost savings. The primary way cloud computing saves costs is through resource sharing and lower per-unit pricing due to the scale of demand across customers.

Correct Answer

C. It would provide them with substantial discounts, reducing overall costs.

Explanation

Switching to reserved instances would allow the company to commit to using a specific amount of resources for a long-term period, such as three years. In return, AWS offers significant discounts compared to on-demand pricing. This financial benefit helps reduce the overall cost of their cloud infrastructure.

Why other options are wrong

A. It would increase their monthly expenses significantly.

This is incorrect because reserved instances typically offer a lower cost than on-demand instances, making them more cost-effective for companies with predictable workloads.

B. It would allow them to pay a flat rate for all services regardless of usage.

While reserved instances offer predictable pricing, they do not imply paying a flat rate for all services. The company would still pay for additional resources outside of the reserved instance capacity.

D. It would limit their ability to scale resources as needed.

This is not accurate. Reserved instances are a cost-saving measure for predictable workloads but do not restrict the ability to scale resources. Companies can still scale up or down with on-demand resources if required.

Correct Answer

B. Organizations can scale their resources based on demand and only pay for what they use.

Explanation

Cloud computing's pay-as-you-go model allows organizations to scale their resources based on actual demand. This ensures that they only pay for the services and resources they use, helping to reduce over-provisioning costs and increase cost efficiency. This flexible pricing model ensures that businesses can adapt quickly to changing needs without incurring unnecessary expenses.

Why other options are wrong

A. Organizations must invest in large amounts of hardware and software licenses

This is incorrect because cloud computing eliminates the need for large capital investments in hardware and software licenses. Instead, organizations can rent resources on a pay-per-use basis, which eliminates upfront costs and ongoing maintenance of physical infrastructure.

C. Organizations are locked into long-term contracts with fixed pricing

Cloud computing typically offers flexible pricing models, including pay-as-you-go and reserved options, but not fixed long-term contracts. This flexibility allows organizations to adapt their cloud usage and costs according to their current needs and budget, avoiding long-term commitments and associated risks.

D. Organizations have to maintain their own data centers and infrastructure

This is incorrect because one of the key benefits of cloud computing is that it frees organizations from the need to maintain their own physical infrastructure and data centers. Cloud service providers manage the infrastructure, which reduces operational costs and allows businesses to focus on core activities.

Correct Answer

A. To provision infrastructure resources via a simple template in a YAML or JSON format

Explanation

AWS CloudFormation is a service that enables users to define and provision AWS infrastructure using code. Through CloudFormation, users create templates in either YAML or JSON format that specify the resources needed for an application. The templates allow for consistent, repeatable deployments of resources like EC2 instances, S3 buckets, and more, enabling automation of infrastructure management.

Why other options are wrong

B. To connect to, configure, and provision an RDS or DynamoDB database

This is incorrect because AWS CloudFormation does not directly focus on configuring databases. It can provision the infrastructure needed for databases, but configuring and managing databases themselves (such as RDS or DynamoDB) is handled through other AWS services like AWS RDS or DynamoDB directly.

C. To create a Virtual Private Cloud with both private and public subnets with Network Access Control Lists for security

This is incorrect because while CloudFormation can provision a Virtual Private Cloud (VPC) as part of an infrastructure stack, it is not the sole purpose of the service. CloudFormation is meant to automate the provisioning of a wide range of resources, not just the network aspects.

D. To introduce auto scaling and elastic load balancers for higher variability

This is incorrect because autoscaling and elastic load balancing are features that can be integrated into CloudFormation templates, but they are not the primary focus of the service. CloudFormation is more about automating and managing infrastructure provisioning, and auto scaling or load balancing is a part of that but not the defining purpose of CloudFormation.

Correct Answer

B. TCO provides a comprehensive view of all costs, influencing long-term financial planning.

Explanation

Total Cost of Ownership (TCO) is a financial estimate that helps businesses assess the overall costs associated with adopting a particular solution, including initial costs, ongoing operational expenses, and long-term financial implications. For cloud services, TCO includes not only subscription costs but also factors like maintenance, scalability, data migration, and security. This helps businesses make more informed decisions, allowing them to plan for future costs and manage their resources effectively.

Why other options are wrong

A. TCO only affects the initial purchase decision.

 This is incorrect because TCO is not just concerned with the initial purchase. It includes ongoing costs, maintenance, and other long-term expenses that affect the overall investment. Cloud services involve recurring costs, so TCO helps to predict and manage future expenses beyond just the initial setup.

C. TCO is irrelevant for cloud services as they are subscription-based.

This is incorrect because TCO is highly relevant for cloud services, even though they are subscription-based. While the cost structure may differ from traditional capital expenses, the total cost still includes various operational expenses over time, such as data transfer, storage, and service scaling. Therefore, TCO remains a crucial factor in decision-making.

D. TCO only considers operational costs, ignoring infrastructure expenses.

This is incorrect because TCO also includes infrastructure costs, even in a cloud environment. While the cloud shifts infrastructure expenses to a subscription model, businesses still need to consider these expenses as part of their overall financial analysis. TCO provides a complete picture, including both operational and infrastructure-related costs.

Correct Answer

C. They will access the CRM system through a web browser instead of a local application.

Explanation

One of the key advantages of Software as a Service (SaaS) is that the software is hosted in the cloud, and users access it via a web browser rather than installing and running it locally on their own servers or devices. This eliminates the need for local installations and simplifies access to the system from any device with an internet connection.

Why other options are wrong

A. They will need to hire more IT staff for local installations.

In a SaaS model, local installations are not required, and companies do not need to hire extra IT staff for software installations. The SaaS provider takes care of the infrastructure and software delivery.

B. They will have to manage software updates and patches themselves.

With SaaS, the service provider manages software updates, patches, and maintenance, reducing the burden on the company. This is a significant advantage over traditional software models, where updates and patches are typically the responsibility of the company.

D. They will pay a one-time fee for the software instead of ongoing costs.

SaaS models generally operate on a subscription basis, with ongoing monthly or annual fees for access to the software, rather than a one-time payment. This provides flexibility but does not eliminate recurring costs.

Correct Answer

 A. A secure cloud platform that offers a broad set of global cloud-based products.

Explanation

AWS (Amazon Web Services) is a comprehensive, secure cloud platform that offers a wide range of services, including computing power, storage options, and networking capabilities. It is used by organizations worldwide to host and scale applications and manage their cloud infrastructure.

Why other options are wrong

B. A remote area for developer to store data or files

This is incorrect because AWS is not just a remote area for storage; it is a full cloud service platform that offers a variety of tools and resources, not limited to storage.

C. An internet provider for faster services

This is wrong because AWS is not an internet service provider. It provides cloud-based services, not internet connectivity services.

D. A company that utilizes fiber optics

While AWS operates with a high level of technology, including fiber optics, this is not its primary function. AWS is a cloud service provider, not a company focused on fiber optics.

Correct Answer

C. It incentivizes companies to increase their resource usage to benefit from lower costs.

Explanation

Tiered pricing by volume offers lower prices as a company uses more of a particular service, such as storage or compute capacity. This pricing model provides an incentive for businesses to increase their usage to take advantage of cost savings, making it an attractive option for companies with scalable workloads or growing resource needs.

Why other options are wrong

A. It encourages companies to use fewer resources to save costs.

This is incorrect because tiered pricing by volume typically encourages companies to increase resource usage in order to benefit from lower rates. Using fewer resources would not take advantage of the cost savings available through volume discounts.

B. It allows companies to predict their costs more accurately regardless of usage.

While tiered pricing can help with cost predictions to some extent, it’s not guaranteed to make costs entirely predictable, especially if usage fluctuates. The predictability depends on how consistent the company's usage is within the pricing tiers.

D. It makes it difficult for companies to understand their billing structure.

This is incorrect. Tiered pricing can actually make it easier for companies to estimate costs because the rates for usage within each tier are usually transparent. The complexity might come from determining which tier a company will fall into, but it doesn't make the billing structure difficult to understand.