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Cloud Digital Leader Why Cloud Technology Can Transform Business Practice Question

Which cloud benefit allows a company to automatically add or remove computing resources based on demand, avoiding both over-provisioning and under-provisioning?

Answer choices

Why each option matters

Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.

Correct answer & explanation

Elasticity

Elasticity (a form of scalability) enables automatic adjustment of resources to match demand, optimizing cost and performance.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • High availability

    Why it's wrong here

    High availability is about maintaining service uptime and resilience against failures, typically through redundancy and failover mechanisms (e.g., multi-AZ deployments, load balancers with health checks). It does not automatically adjust compute capacity in response to demand changes; instead, it ensures that whatever capacity is provisioned remains reachable and operational. Scaling up or down based on workload is the function of elasticity, not high availability.

  • Pay-as-you-go

    Why it's wrong here

    Pay-as-you-go is a consumption-based pricing model where customers pay only for the resources they actually use, rather than upfront or reserved capacity. While this provides cost flexibility and can complement autoscaling, it is a billing and financial concept, not a mechanism that automatically adds or removes resources. The automatic adjustment of resource capacity in response to demand is elasticity, not pricing.

  • Elasticity

    Why this is correct

    Elasticity is the cloud capability that automatically provisions and de-provisions compute, storage, or other resources to match current demand in real time. It relies on monitoring metrics (CPU, memory, request count) and autoscaling policies or services (e.g., Google Cloud Autoscaler, managed instance groups) to increase or decrease capacity without manual intervention. This directly fulfills the requirement to automatically add or remove resources, making it the correct choice.

  • Global reach

    Why it's wrong here

    Global reach refers to a cloud provider's geographic footprint—the number and distribution of regions, zones, and edge points of presence—that allows deploying workloads closer to end users for lower latency and better compliance. It does not involve dynamic resource adjustment or demand-based scaling; rather, it is about static placement and availability across geographies. The benefit of automatically adding or removing capacity is unrelated to geographic spread.

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