A company is in its second year of a threeyear agreement wit - CompTIA CLO-002

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
  1. correct
Explanation

Correct Answer: A. Reserved Instances

Reserved instances are a cost-saving option offered by many cloud providers, allowing organizations to commit to using a specific amount of resources (e.g., compute or storage) for a longer period (usually 1 or 3 years) in exchange for significantly reduced rates compared to on-demand pricing.

  • Why it’s correct:
    • Since the company’s resource consumption has stabilized, committing to reserved instances ensures predictable and lower costs for consistent usage.
    • Reserved instances are ideal for long-term workloads where usage patterns are predictable, as in this case.
    • Example: In AWS, purchasing a reserved EC2 instance for a 3-year term can save up to 75% compared to on-demand pricing.

Why the Other Options Are Incorrect:

Pay-as-you-go (Incorrect)

Pay-as-you-go allows organizations to pay only for the resources they consume, typically at higher on-demand rates. While it offers flexibility, it is not cost-effective for workloads with consistent and predictable usage.

  • Why it’s incorrect:
    • The company’s resource consumption has stabilized, making reserved instances a better option for cost savings.

Spot Instances (Incorrect)

Spot instances provide discounted pricing for unused cloud capacity but come with the risk of being terminated if the provider needs the resources. They are suited for non-critical, flexible workloads rather than stable, long-term infrastructure needs.

  • Why it’s incorrect:
    • Spot instances are not reliable for workloads that require consistency and stability, such as those in a production environment.

Bring Your Own License (BYOL) (Incorrect)

Bring Your Own License allows organizations to use their existing software licenses on the cloud, which can reduce costs for software. However, it does not directly impact the cost of the cloud infrastructure itself.

  • Why it’s incorrect:
    • BYOL addresses software licensing costs, not the cost of the underlying cloud infrastructure.

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