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Microsoft Azure Fundamentals AZ-900 Practice Question

An organization seeks to lower its cloud expenditure for an application that has a stable workload. They are open to making upfront payments to gain cost benefits. Which Azure pricing model would help them achieve the greatest savings?

Pay-as-you-go pricing
Reserved Virtual Machine Instances
Spot Virtual Machines
Azure Hybrid Benefit

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Answer Description

Reserved Virtual Machine Instances offer significant cost savings for predictable workloads by allowing customers to reserve virtual machines for one or three years in exchange for a lower price, up to 72% compared to pay-as-you-go. Since the application has a stable workload and the organization is willing to make upfront payments, this pricing model provides the greatest savings.

Spot Virtual Machines provide discounts for unused capacity but are not suitable for applications requiring continuous availability.

Pay-as-you-go pricing offers flexibility without upfront costs but is more expensive over time for steady workloads.

Azure Hybrid Benefit allows use of existing licenses but does not provide the same level of cost savings as reserving resources in advance.

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Microsoft Azure Fundamentals AZ-900

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