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?
The current total cost for the cloud servers over the specified period is calculated as follows:
For the 3 servers online for 9 months:
3 servers×200 per month×9 months=5,400For the 1 server online for 12 months:
200 per month×12 months=2,400Total current cost:
5,400+2,400=7,800
Now, calculating the cost for using reserved instances:
For the 3 servers using reserved instances for 1 year:
3 servers×1,500 per year=4,500For the 1 server using reserved instances for 1 year:
1 server×1,500 per year=1,500Total cost with reserved instances:
4,500+1,500=6,000
Thus, the cost savings by switching to reserved instances is:
7,800−6,000=1,800
No Payment Cards Needed
Discover a range of courses designed to provide you with the knowledge and skills needed to excel in your chosen field.
You don’t need one month to study and pass your test.
With Prepsaret, it takes you a few days to grasp all the concepts needed to pass your exams