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Microsoft Azure Fundamentals AZ-900 Practice Question

A company wants to reduce their cloud service costs by committing to a one-year or three-year term with a cloud provider. Which pricing model allows them to do this?

Reserved pricing model
Consumption-based model
Spot pricing model
Pay-as-you-go model

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Answer Description

The reserved pricing model allows customers to commit to a longer-term contract (typically one or three years) with the cloud provider in exchange for a discounted rate. This model can significantly reduce costs for predictable workloads compared to pay-as-you-go pricing. The other options, like pay-as-you-go and consumption-based models, charge based on actual usage without long-term commitments, and spot pricing involves purchasing unused capacity at discounted rates but doesn't require long-term contracts.

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Microsoft Azure Fundamentals AZ-900

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