Microsoft Azure Architect Design (AZ-304) Practice Test

What strategy should be adopted for minimizing the compute costs of Azure virtual machines when migrating workloads from an on-premises Hyper-V cluster?

1. Purchase Azure Reserved Virtual Machine Instances

2. Create virtual machine scale sets for autoscaling

3. Use only Spot VMs for all workloads

4. Deploy Linux-based VMs exclusively

The correct answer is: Purchase Azure Reserved Virtual Machine Instances

The strategy of purchasing Azure Reserved Virtual Machine Instances is effective in minimizing compute costs for several key reasons. When migrating workloads from an on-premises Hyper-V cluster to Azure, organizations often look for ways to optimize their cloud spending. Reserved Virtual Machine Instances enable organizations to commit to using Azure VMs for a one- or three-year term, which results in significant cost savings compared to pay-as-you-go billing. This commitment allows Azure to offer discounted rates for the reserved capacity, sometimes up to 72% lower than the on-demand pricing. By analyzing workload requirements and selecting the appropriate VM types for the expected duration of use, organizations can efficiently manage their budget and reduce overall expenses. Other strategies, while potentially beneficial in certain scenarios, may not provide the same level of cost efficiency or could introduce complexities. For example, virtual machine scale sets for autoscaling are useful for managing dynamic workloads, but they can lead to fluctuating costs based on usage patterns. Spot VMs offer significant savings but are subject to availability and can be evicted at any time, which may not be suitable for all workloads. Exclusively deploying Linux-based VMs may provide some cost benefits due to lower licensing fees, but this approach could limit flexibility and compatibility with existing applications already running on