ACloud Guru Certified Cloud Practitioner Practice Exam

Which AWS service facilitates variable expense over capital expense?

1. AWS Lambda

2. Amazon S3

3. AWS Organizations

4. AWS Cost Explorer

The correct answer is: AWS Lambda

The correct answer is AWS Lambda because it operates on a pay-as-you-go pricing model, allowing users to incur costs based on actual usage rather than making large upfront capital expenditures. With AWS Lambda, you only pay for the compute time that you consume when your code is executed. This means that you can scale up and down in response to your application's demand without worrying about over-provisioning resources or being locked into long-term financial commitments. The flexibility of AWS Lambda helps organizations manage their costs effectively. Instead of investing in servers or infrastructure upfront, users can leverage Lambda to run code only when needed, leading to variable expenses that can align more closely with fluctuating demand. This model is particularly beneficial for startups and businesses looking to reduce their financial risk as they scale their applications. Regarding the other options, Amazon S3 primarily deals with storage and charges based on the amount of storage used and data transferred. While it can also be considered variable to some extent, it’s more focused on storage rather than compute services. AWS Organizations enables account management and governance, but it doesn't directly relate to expenses. AWS Cost Explorer provides tools for viewing and analyzing costs but does not directly influence how expenses are incurred in a variable manner compared to capital expenditures.