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Cloud Economics and SLA Questions and Answers

Answer: C

Without tags a bill is a single undifferentiated number that nobody feels responsible for. Tagging turns it into per team figures, which is the precondition for anyone actually acting on them. An untagged account makes every optimisation discussion an argument about whose it is.

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12.

Assertion (A): Cost attribution changes behaviour more reliably than a cost report does.
Reason (R): A team that sees its own spending has both the information and the reason to act on it.

Answer: D

Correct answer: Both A and R are true, and R is the correct explanation of A

Both are true and the reason gives the mechanism. A central report is read by someone who cannot change the spending, while attribution by tag puts each team’s own figure in front of the people who chose the instance sizes and wrote the queries. Information alone does not change behaviour; information plus ownership does, which is why tagging discipline is the foundation of cloud cost management.

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Answer: A

Removing the standby instance removes the redundancy and so does reduce capability, whatever it saves. The other three each take away waste that nobody was benefiting from in the first place. Unattached volumes in particular accumulate quietly and are billed indefinitely.

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Answer: B

Correct answer: staff time, power, cooling and hardware refresh cycles

A comparison against the cloud invoice alone flatters on-premises, because the hardware price omits everything around it: the data centre space, power and cooling, the network and storage, the staff who operate it, the spares, the licences and the replacement in three to five years. Counting all of it usually narrows the gap considerably in both directions - which is why the honest answer to which is cheaper is that it depends on the workload.

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15.

Consider the following statements about total cost of ownership.
1. Staff time spent operating hardware is a genuine cost.
2. The hardware refresh cycle must be amortised into the comparison.
3. The cloud invoice compares directly with the server purchase price.

Answer: C

The first two are correct and are the items most often left out. The third is the flawed comparison itself, since one figure is a recurring service charge and the other a one-off capital purchase. Amortising the purchase over its useful life is the least a fair comparison requires.

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Answer: D

Correct answer: is a contractual commitment with a defined remedy

An agreement is contractual and carries a consequence for breach, normally a service credit. An objective is an internal target with no external remedy, used to steer engineering effort. The distinction matters when reading a provider’s figures: the published availability is often an objective, and only the numbers in the contract carry any obligation.

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17.

Assertion (A): An internal service level objective is usually set stricter than the published agreement.
Reason (R): Missing the internal target then gives warning before the contractual one is breached.

Answer: A

Correct answer: Both A and R are true, and R is the correct explanation of A

Both are true and the reason gives the purpose. Setting the internal objective above the contractual figure creates a margin: breaching the internal target raises an alert while the contract is still being met, so there is time to act before credits are owed and customers are affected. Running to the contractual number exactly leaves no warning at all.

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Answer: B

Credits are capped at a percentage of the affected charges and are usually claimed rather than granted automatically. They rarely approach the value of the business lost, which is why availability is designed for rather than merely contracted for.

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19.

State whether the following is true or false.
A service credit generally compensates the customer for the full business impact of an outage.

Answer: C

Credits are a small fraction of the affected month's charges and consequential loss is normally excluded. The agreement is best read as a statement of the provider's seriousness rather than as insurance against downtime.

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20.

A service promises 99.9% monthly availability. Roughly how much downtime does that permit in a thirty day month?

Answer: D

Correct answer: about 43 minutes

A thirty day month is \[ 30\times24\times60 = 43{,}200\ \mathrm{minutes}, \] and 0.1 per cent of that is 43.2 minutes. The figures worth memorising follow the same pattern: 99 per cent allows about 7 hours a month, 99.9 per cent about 43 minutes, 99.95 per cent about 22 minutes and 99.99 per cent about 4 minutes.

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