Benefits of the AWS Cloud · Question 1 of 12
Why can AWS often offer computing capacity more cheaply than a single company could run it itself?
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Answer
- A Because the combined usage of many customers creates large economies of scale
Explanation
AWS buys hardware, power and network capacity for hundreds of thousands of customers and runs it at high utilization. These economies of scale lower the cost per unit, and AWS passes them on as lower pay-as-you-go prices. The servers belong to AWS, not to the customers.