Explantation for each answer:
• Consolidate all workloads on a single cloud provider to simplify cost management
o This is not a recommended approach as it may lead to vendor lock-in and reduced flexibility. A multi-
cloud strategy allows for greater flexibility and choice of services.
• Use the same instance types and sizes across all cloud providers to simplify management and reduce
costs
o This is not a recommended approach as workloads have different resource requirements. Using the
same instance types and sizes may result in overprovisioning or underprovisioning of resources.
• Utilize reserved instances or savings plans to reduce costs and ensure availability
o This is a recommended approach as it allows for cost savings while ensuring availability. Reserved
instances and savings plans provide discounted rates for resources that are committed to for a certain
period.
• Continuously monitor and compare costs across all cloud providers to identify cost-saving opportunities
o This is a recommended approach as it allows for identification of cost-saving opportunities across all
cloud providers. Continuous monitoring and comparison can help identify opportunities for rightsizing
resources, switching to lower cost providers, or optimizing usage.
• Implement a fixed budget for each cloud provider to prevent overspending
o This is not a recommended approach as it may limit flexibility and hinder the ability to respond to
changing business needs. Fixed budgets can result in overspending on critical workloads or
underspending on less important ones.
Optimizing costs in a multi-cloud environment requires a different approach than a single-cloud
environment. Best practices include utilizing reserved instances or savings plans, continuously
monitoring and comparing costs across all cloud providers, maintaining appropriate backup and disaster
recovery measures, and avoiding fixed budgets for each cloud provider.
Continuous monitoring and comparison can help identify cost-saving opportunities across all cloud
providers. Implementing these best practices can help organizations achieve cost optimization goals
while maintaining performance and availability across all cloud providers.
