An organization plans to keep three of its cloud servers online for another nine months and a fourth server online for a year.
The current pricing is $200 per month per server.
The cloud provider announced the sale price of $1,500 per year per reserved instance.
Which of the following represents the cost savings by converting all four of the cloud servers to reserved instances?
Click on the arrows to vote for the correct answer
A. B. C. D.B.
To calculate the cost savings of converting all four cloud servers to reserved instances, we need to compare the current pricing of $200 per month per server to the sale price of $1,500 per year per reserved instance.
First, let's calculate the cost of keeping all four servers online for the specified periods:
Total cost for all four servers: $5,400 + $2,400 = $7,800
Now, let's calculate the cost of converting all four servers to reserved instances:
The cost savings can be calculated by subtracting the cost of reserved instances from the cost of keeping the servers online:
$7,800 - $6,000 = $1,800
Therefore, the correct answer is B. $1,800, which represents the cost savings by converting all four cloud servers to reserved instances.