Reserved instances are a type of virtual machine (VM) that are purchased in advance and offer a significant discount compared to on-demand pricing. The company is considering moving all of its VMs to reserved instances, which would save 20% on each instance. The instances the company would move are shown below. The total annual cost of the VMs is $66600. Therefore, the company would save 20% of $66600, which is $13320 annually. References: CompTIA Cloud Essentials+ Certification Study Guide, Second Edition (Exam CLO-002), Chapter 2: Cloud Concepts, Section 2.2: Cloud Economics, Subsection 2.2.2: Cloud Pricing Models

This is a table of virtual machines (VMs) that the company is considering moving to reserved instances.

The table has three columns: Resource, Tag, and Currently monthly cost.

The table has 11 rows, each representing a different VM.

Resource

Tag

Currently monthly cost

VM1

Web Server

$100

VM2

Web Server

$100

VM3

Web Server

$100

VM4

Database Server

$200

VM5

Database Server

$200

VM6

Database Server

$200

VM7

Application Server

$300

VM8

Application Server

$300

VM9

Application Server

$300

VM10

Backup Server

$400

VM11

Backup Server

$400