Cost Optimization and Business Justification Questions

Covers evaluating and reducing costs across system architecture and procurement while building a financial case for change. Candidates should be able to identify cost drivers at the infrastructure and application level, including compute sizing, storage choices, data transfer, and managed service versus self managed trade offs. Expect concrete optimization techniques such as right sizing resources, using lower cost capacity options, reserved capacity, and moving to managed services when operational cost and reliability justify the premium. Also covers measurement and governance practices including cost tagging, billing analysis, budgeting, and continuous monitoring. On the business side, candidates should quantify savings and value using total cost of ownership and return on investment calculations, cost avoidance and efficiency metrics, payback period estimation, and sensitivity analysis for key assumptions. This topic includes evaluating procurement and supplier strategies, understanding short term versus long term value, balancing cost reductions with performance, maintainability, and supplier relationship health, and preparing clear cost estimates and business justification for stakeholders.