CLO-002 Business Principles OF Cloud Environments Practice Question
An organization is migrating to the cloud and decides to use 'Reserved Instances'. What is the main business benefit?
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Significant cost savings over long-term usage
Reserved instances provide a significant cost discount in exchange for a long-term commitment.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Instant scalability for spikes
Why it's wrong here
Reserved instances are fixed capacity; they do not automatically scale.
- ✗
Elimination of identity management
Why it's wrong here
Identity management remains a customer responsibility.
- ✗
Ability to move between cloud providers
Why it's wrong here
Reserved instances are specific to a single cloud provider.
- ✓
Significant cost savings over long-term usage
Why this is correct
Reserved instances offer deep discounts for committed capacity over 1-3 years.
About these practice questions
One of 211 original CLO-002 practice questions on Courseiva, each with a full explanation and wrong-answer analysis — not exam dumps or protected exam content. Learn why practice questions differ from exam dumps →
JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed August 2026 · checked against the official CompTIA exam blueprint
This CLO-002 practice question is part of Courseiva's free CompTIA certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the CLO-002 exam.