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

Question

Quizplus · Accepted Answer

The cost for four servers without reserved instances for a year is $200 x 4 x 12 = $9,600. The cost with reserved instances is $1,500 x 4 = $6,000. The savings is $9,600 - $6,000 = $3,600. However, since three servers are only needed for nine months, the savings is $3,600 - $1,800 (the extra cost for three servers for three months) = $1,800.

An Organization Plans to Keep Three of Its Cloud Servers