The company needs a cloud-based storage solution for frequently accessed data with low latency, while retaining their current on-premises infrastructure for some data storage. AWS Storage Gateway'sVolume Gateway with cached volumesis the most appropriate solution for this scenario.

AWS Storage Gateway - Volume Gateway (Cached Volumes):

Volume Gateway with cached volumesallows you to store frequently accessed data in the AWS Cloud while keeping the most recently accessed data cached locally on-premises. This ensures low-latency access to active data while providing scalability for the rest of the data in the cloud.

The cached volume option stores the primary data in Amazon S3 but caches frequently accessed data locally, ensuring fast access. This configuration is well-suited for applications that require fast access to frequently used data but can tolerate cloud-based storage for the rest.

Since the company is facing limited on-premises storage, cached volumes provide an ideal solution, as they reduce the need for additional on-premises storage infrastructure.

Why Not the Other Options?:

Option A (S3 File Gateway): S3 File Gateway provides a file-based interface (SMB/NFS) for storing data directly in S3. While it is great for file storage, the company’s need for block-level storage with iSCSI targets makes Volume Gateway a better fit.

Option C (Volume Gateway - Stored Volumes): Stored volumes keep all the data on-premises and asynchronously back up to AWS. This would not address the company's storage limitations since they would still need substantial on-premises storage.

Option D (Tape Gateway): Tape Gateway is designed for archiving and backup, not for frequently accessed low-latency data.

AWS References:

AWS Storage Gateway - Volume Gateway