A small business runs its IT infrastructure in a small on-premises server room. The business owner is considering moving to Azure and asks the IT manager: 'How can a large cloud provider like Microsoft offer compute and storage at a lower per-unit cost than I can get by purchasing my own servers, even though I only need a few virtual machines?' Which cloud computing benefit best answers this question?
Answer choices
Why each option matters
Good practice is not just finding the correct option. The wrong answers often show the exact trap the exam wants you to fall into.
Distractor review
High availability
High availability refers to ensuring services remain operational despite failures. It does not directly address cost per unit, which is the focus of the question.
Distractor review
Elasticity
Elasticity allows resources to scale up or down based on demand, which can reduce waste but does not explain why the cloud provider's base per-unit cost is lower than on-premises procurement.
Best answer
Economies of scale
Economies of scale occur when a provider's large size enables it to purchase hardware, energy, and bandwidth at much lower prices per unit. These savings are passed to customers, making cloud services cost-effective even for small deployments.
Distractor review
Fault tolerance
Fault tolerance is the ability of a system to continue functioning even if components fail. It is unrelated to the cost advantage of using a large cloud provider.
Common exam trap
Common exam trap: answer the scenario, not the keyword
Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.
Technical deep dive
How to think about this question
This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
- Use explanations to understand the rule behind the answer.
TExam Day Tips
- Underline the problem statement mentally.
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Related practice questions
Related AZ-900 practice-question pages
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More questions from this exam
Keep practising from the same exam bank, or move into a focused topic page if this question exposed a weak area.
Question 1
A developer is building a serverless application that requires integration with an on-premises SQL Server database for real-time data processing. The on-premises network is connected to Azure via a site-to-site VPN. Which Azure service would allow the function to securely access the on-premises database without exposing it to the public internet?
Question 2
A solutions architect is designing a storage solution for a large media company. The company needs to store video files that are accessed infrequently but must be retained for several years for compliance. Which two Azure storage options meet these requirements? (Select two.)
Question 3
A company deploys a multi-tier application using Azure virtual machines. The web tier VMs must be evenly distributed across two distinct data centers within an Azure region to avoid a single point of failure from an infrastructure outage. Which Azure construct should they use to meet this requirement?
Question 4
A company wants to enforce a set of security policies across all their Azure subscriptions. They have created several individual policy definitions. Which Azure construct should they use to group these policies together and assign them as a single package?
Question 5
A company deploys a line-of-business application on an Azure virtual machine. The IT team wants to ensure the application remains secure. According to the shared responsibility model, which of the following security tasks is the sole responsibility of the customer (the company)?
Question 6
A company develops a web API that runs on Azure App Service. The development team wants to deploy a new version of the API to a staging environment, run integration tests against it, and then gradually shift production traffic to the new version. If any issues are detected, they want to immediately roll back to the previous version without redeploying. Which Azure App Service feature should the team use to meet these requirements?
FAQ
Questions learners often ask
What does this AZ-900 question test?
Read the scenario before looking for a memorised answer.
What is the correct answer to this question?
The correct answer is: Economies of scale — This question tests understanding of economies of scale in cloud computing. Large cloud providers like Microsoft operate massive data centers and purchase hardware, bandwidth, and power in huge volumes. This bulk purchasing power, combined with operational efficiencies, allows them to offer resources at a lower per-unit cost than a small business could achieve with its own limited procurement. Elasticity and high availability are important benefits but do not directly explain the per-unit cost advantage. Fault tolerance relates to system resilience, not cost reduction.
What should I do if I get this AZ-900 question wrong?
Then try more questions from the same exam bank and focus on understanding why the wrong options are tempting.
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