Question 1
Link to questionA company is evaluating the cost-effectiveness of migrating its on-premises infrastructure to a public cloud service. They estimate that their current monthly operational costs are 0.10 per GB of storage and $0.05 per compute hour. If the company anticipates needing 500 GB of storage and 200 compute hours per month, what would be the total monthly cost of using the public cloud service, and how does this compare to their current costs?
$6,500
$8,000
$7,500
$9,000
Show answer and explanation
Correct answer
$6,500
1. **Storage Cost Calculation**: The company requires 500 GB of storage. The cost per GB is 0.10. Therefore, the total storage cost can be calculated as: \\[ \\text{Storage Cost} = 500 \\, \\text{GB} \\times 0.10 \\, \\text{USD/GB} = 50 \\, \\text{USD} \\] 2. **Compute Cost Calculation**: The company anticipates needing 200 compute hours. The cost per compute hour is 0.05. Thus, the total compute cost is: \\[ \\text{Compute Cost} = 200 \\, \\text{hours} \\times 0.05 \\, \\text{USD/hour} = 10 \\, \\text{USD} \\] 3. **Total Cloud Cost**: Now, we sum the storage and compute costs to find the total monthly cost of the public cloud service: \\[ \\text{Total Cloud Cost} = \\text{Storage Cost} + \\text{Compute Cost} = 50 \\, \\text{USD} + 10 \\, \\text{USD} = 60 \\, \\text{USD} \\] 4. **Comparison with Current Costs**: The current monthly operational costs are 60 is significantly lower than the current costs. This analysis highlights the potential cost savings associated with migrating to a public cloud service. However, it is essential to consider other factors such as performance, scalability, security, and compliance with regulations, which may also influence the decision to migrate. The cost-effectiveness of public cloud services can vary based on usage patterns and specific business needs, making it crucial for companies to conduct a thorough analysis before making such a transition.
