Ways to Reduce Infrastructure Costs in Cloud Migration
Question
A company is in its second year of a three-year agreement with a cloud vendor.
After the initial phase of the cloud migration, resource consumption has stabilized.
Which of the following would help the company reduce the cost of infrastructure?
Answers
Explanations
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A. B. C. D.A.
Sure, here's a detailed explanation of each option and how it can help reduce the cost of infrastructure for a company that is in its second year of a three-year agreement with a cloud vendor and has stabilized resource consumption:
A. Reserved instances: Reserved instances are a pricing model offered by cloud providers where customers can reserve computing capacity in advance for a one- or three-year period. By committing to a longer-term contract, customers can receive a discount compared to on-demand pricing. This option could be beneficial for a company that has stabilized resource consumption because they can accurately predict their future usage and commit to a specific amount of computing capacity for a longer period, potentially resulting in a lower cost than on-demand pricing.
B. Pay-as-you-go: Pay-as-you-go is a pricing model offered by cloud providers where customers pay for computing resources only when they use them. This option is useful for companies that experience fluctuating resource consumption because they only pay for what they use. However, for a company that has stabilized resource consumption, pay-as-you-go may not be the most cost-effective option as they may end up paying more for the same resources over a longer period.
C. Spot instances: Spot instances are a pricing model offered by cloud providers where customers can bid on unused computing capacity in the cloud. This option could be useful for a company that has predictable and non-critical workloads because they can bid on spare capacity at a lower price than on-demand pricing. However, spot instances may not be the best option for critical workloads as they can be terminated by the cloud provider with little notice if the capacity is needed for on-demand instances.
D. Bring your own license: Bring your own license (BYOL) is an option where customers can use their existing software licenses in the cloud, rather than purchasing licenses from the cloud provider. This option can be beneficial for companies that have already invested in software licenses and want to avoid additional licensing costs in the cloud. However, this option may not help reduce the cost of infrastructure directly as it only applies to software licensing.
In conclusion, of the given options, A. Reserved instances would be the best option to help the company reduce the cost of infrastructure as they can accurately predict their future usage and commit to a specific amount of computing capacity for a longer period, potentially resulting in a lower cost than on-demand pricing.
