AZ-120 Question #231: Real Exam Question with Answer & Explanation

Question

Options

• AAzure Hybrid Benefit
• Ba one-year reservation that has capacity priority
• Ca three-year reservation that has instance size flexibility
• Da one-year reservation that has instance size flexibility

Explanation

Reservation for SAP HANA Large Instances: Azure offers reserved capacity for SAP HANA Large Instances (HLI) with options for one-year or three-year terms, which provide significant cost savings compared to pay-as-you-go pricing. Instance Size Flexibility: Typically, Azure Reserved VM Instances support instance size flexibility, allowing the reservation discount to apply across different VM sizes within the same instance size flexibility group. However, for SAP HANA Large Instances specifically, instance size flexibility is not supported. Reservations apply only to the exact SKU and region purchased. Since you want to minimize costs for the next three years but plan to change instance sizes after two years, you need a reservation that allows instance size flexibility to cover the transition from one large instance to smaller ones without losing reservation benefits. The best cost-saving approach is to purchase a three-year reservation for the large instance to maximize savings over the three years, despite the lack of instance size flexibility. This locks in the lower rate for the entire period, and after the two years, when you replace the large instance with smaller ones, you may lose some reservation benefits, but the overall savings for the majority of the period will be maximized.

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