Correct Answer: C
The correct answer is C. Economies of scale.
Economies of scale are the cost advantages that CSPs can achieve by increasing the size and scale of their operations. By spreading the fixed costs of infrastructure, software, and personnel over a larger customer base and data volume, CSPs can reduce the average cost per unit of service and offer unlimited capacity to customers at competitive prices1.
Adequate budget is not a sufficient condition for offering unlimited capacity, as CSPs still need to optimize their resource utilization and efficiency to meet the growing demand for data storage and processing.
Global data center distribution is a strategy that CSPs use to improve their service availability, reliability, and performance by locating their servers closer to their customers and reducing network latency. However, this does not necessarily imply unlimited capacity, as CSPs still need to manage the trade-offs between data center size, cost, and power consumption.
Agile project management is a methodology that CSPs use to deliver their services faster, better, and cheaper by adopting iterative, incremental, and collaborative approaches. However, this does not directly affect their capacity, as CSPs still need to scale their infrastructure and software to handle the increasing data load.