What is the Centralized Reservation Model?

• A. Having one team take the responsibility to purchase and analyze the necessity for reserved instances.
• B. Distributing RI ownership across teams to encourage broad involvement.
• C. Automatically applying reservations to all usage without review.
• D. Outsourcing RI decisions to a third-party provider.

Answer: (A)

Centralized Reservation Model means one team takes the lead in buying and analyzing reserved instances, owning the process of determining where reservations are worth it and how they should be applied. This central ownership provides clear governance, consistent coverage, and better visibility into demand, utilization, and savings. With a single point of control, purchases can be consolidated to maximize discounts, tracking and forecasting become more accurate, and adjustments can be made as workloads evolve.

Distributing RI ownership across many teams can scatter responsibility, creating gaps in visibility and underutilization. Automatically applying reservations to all usage without review risks over- or mis-provisioning, leading to wasted spend. Outsourcing RI decisions to a third party removes internal accountability and can misalign commitments with actual business needs.