A project requires specialized cloud infrastructure services that are only available from two vendors. One vendor offers lower costs but has limited availability, while the other offers higher costs but guaranteed availability. The project has strict uptime requirements. What should the project manager do FIRST?

Answer options:

Select the lower-cost vendor and develop contingency plans for availability issues

Analyze the total cost of ownership including potential downtime costs and risk mitigation

Choose the higher-cost vendor since availability is a strict requirement

Negotiate with both vendors to find a middle ground on cost and availability

How to approach this question

Look for comprehensive analysis approaches that consider all costs and risks, not just the obvious factors like initial price.

Full Answer

B.Analyze the total cost of ownership including potential downtime costs and risk mitigation✓ Correct

Effective procurement decisions require analyzing total cost of ownership, including potential costs of service failures, not just initial service prices.

Common mistakes

Focusing only on initial costs, making decisions based on single factors, or not considering the full cost impact of different risk levels.

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