CLF-C02 - Cloud Concepts - Section 1.6

Understand concepts of cloud economics, including fixed versus variable costs, the cost of on-premises environments, rightsizing and licensing strategies such as Bring Your Own License.

Distinguish fixed on-premises costs from the variable cost model of cloud, and apply total cost of ownership analysis to compare the two. Understand rightsizing as the practice of matching instance capacity to actual workload demand, and recognise Bring Your Own License as a strategy to reuse existing software licences in AWS.

Fixed versus variable costTotal cost of ownershipRightsizingBring Your Own License

Practice question for this objective

Free sampleCloud Conceptseasy

A company already owns valid software licences for a database engine and wants to keep using those licences on AWS instead of paying for new ones bundled into the service. Which licensing strategy supports this goal?

  • ABring Your Own License, applying the licences the company already owns to its AWS workloads Correct
  • BRightsizing the database instance so that it runs on the smallest possible compute size
  • CSwitching the workload to a variable cost model so the licence fee scales with usage
  • DTotal cost of ownership analysis to compare the on-premises and cloud licence prices
Bring Your Own License lets a company reuse software licences it already owns on AWS workloads. Bring Your Own License applies existing, paid-for software licences to cloud resources, so the company avoids buying new licences and lowers the software portion of its bill.

Why A is correct: Bring Your Own License lets a company reuse software licences it has already bought, avoiding the cost of new licences included in a service.

Why B is wrong: Rightsizing controls how much compute you pay for, but it does nothing to let the company reuse software licences it already owns.

Why C is wrong: Changing to variable pricing affects how charges accrue, not whether existing licences can be carried over to the cloud.

Why D is wrong: A total cost of ownership study compares overall costs, but it is an analysis method, not the strategy that reuses owned licences.

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