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?
The correct answer is A. Reserved instances.
Explanation:
• Reserved Instances: These allow a company to commit to using a certain amount of cloud resources over a longer period (typically one or three years) in exchange for a significant discount compared to on-demand pricing. Since the company’s resource consumption has stabilized, they can benefit from the cost savings associated with reserved instances, as they are likely to continue needing the same amount of resources.
Reserved instances are hardware profiles that your organization commits
to, usually for a period of one to three years. CSPs offer significant discounts
for such commitments. The instance utilization is predictable and relatively
steady. Reserved instances are a great choice for businesses who know that
certain virtual machines will always be in use over a period of years.
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