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CLO-002 · Question #354

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…

The correct answer is B. $1,800. 3 servers for 9 months = 3x200x9 = $5400 1 server for 12 months = 1x200x12=$2400 Current estimated cost = $5400+$2400 = $7800. CSP offers flat $1500 for each instance for a year, so for 4 instances = $1500x4=$6000. So, Savings = $7800-$6000=$1800.

Business Principles of Cloud

Question

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?

Options

  • A$900
  • B$1,800
  • C$2,400
  • D$3,600

How the community answered

(42 responses)
  • A
    5% (2)
  • B
    83% (35)
  • C
    2% (1)
  • D
    10% (4)

Explanation

3 servers for 9 months = 3x200x9 = $5400 1 server for 12 months = 1x200x12=$2400 Current estimated cost = $5400+$2400 = $7800. CSP offers flat $1500 for each instance for a year, so for 4 instances = $1500x4=$6000. So, Savings = $7800-$6000=$1800.

Topics

#reserved instances#cost calculation#cloud pricing models#OpEx vs CapEx

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