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The 6 Advantages of Cloud Computing

Learn AWS's official six advantages of cloud computing and why they explain how organizations think about moving to the cloud.

12 min
Introductory
Learning Outcomes

By the end of this lesson, you will be able to:

  • Name and describe the six advantages of cloud computing.
  • Match each advantage to a real-world business scenario.
  • Explain the difference between capital expense (CapEx) and operational expense (OpEx).

Why This Matters

AWS publishes an official list of six advantages of cloud computing. Understanding each one — and recognizing it in a real scenario — is the foundation for everything that follows in this course.


The 6 Advantages

01 / 06

Trade Capital Expense for Variable Expense

Instead of investing heavily in data centers and servers before you know how you'll use them, you pay only when you consume computing resources — and only for how much you consume.

Real-world scenario

A retailer pays $2M upfront for servers that sit idle 11 months of the year. On AWS, they pay only during peak season.


CapEx vs. OpEx — A Quick Comparison

Capital Expense

CapEx

Operational Expense

OpEx

When you pay
Large upfront investment
Pay as you go
Risk
High — you commit before knowing demand
Low — you scale with actual usage
Example
Buying 50 physical servers
Running EC2 instances on demand
Balance sheet
Depreciating asset
Monthly operating cost

Moving to the cloud does not guarantee lower costs. It changes the structure of costs from fixed and upfront to variable and usage-based. Total cost depends on how well you architect.


Matching Advantages to Scenarios

Micro-Activity

Match each scenario to its advantage

Examples

Choose one, then match it on the right

Characteristics

Select an example first

0 of 6 matched so far.


Summary

The core shift across all six advantages is from fixed, upfront, guess-based infrastructure to variable, on-demand, global infrastructure.


Quiz

Knowledge Check
1 / 5

A company currently pays $500,000 upfront for servers every 3 years, regardless of how much they actually use. Which advantage of cloud computing most directly addresses this problem?