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AWS Outposts differs from a Local Zone in that Outposts:

AAre physical AWS-managed racks installed in a customer's own data center or facility
BAre available only inside AWS GovCloud Regions
CReplace S3 with a customer-hosted FTP server
DAre virtual Regions accessible only via VPN
Answer & Solution
Correct answer: A. Are physical AWS-managed racks installed in a customer's own data center or facility
Outposts are physical AWS hardware (servers, switches, racks) that AWS ships to and installs in a customer site, extending the AWS Region into the customer's premises for workloads that need to be on-prem (data residency, low-latency to on-site equipment). Local Zones, by contrast, are AWS-owned facilities in metro areas.
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