Which data tier is suitable for data that is financial in nature, not accessed daily, and archived for tax purposes?

Which data tier is suitable for data that is financial in nature, not accessed daily, and archived for tax purposes?

• A. Tier 1
• B. Tier 2
• C. Tier 3
• D. Tier 4

Answer: (C)

Data tiering helps balance cost against how often data is accessed. For financial data kept for tax purposes, you want it to be kept long-term at a much lower cost since it isn’t needed daily, but you still need it retrievable when audits or regulatory reviews arise. This makes a tier designed for infrequent but possible access the best fit, as it lowers storage costs compared with active, high-performance tiers while still keeping the data online or quickly available if needed. Tier 1 is too expensive for data not accessed daily, since it targets frequent, high-speed access. Tier 2 is cheaper than Tier 1 but still aimed at more regular use. Tier 4 is typically a deeper archive with even longer retrieval times and sometimes offline storage, which can be impractical for timely tax-related access.

Data tiering helps balance cost against how often data is accessed. For financial data kept for tax purposes, you want it to be kept long-term at a much lower cost since it isn’t needed daily, but you still need it retrievable when audits or regulatory reviews arise. This makes a tier designed for infrequent but possible access the best fit, as it lowers storage costs compared with active, high-performance tiers while still keeping the data online or quickly available if needed. Tier 1 is too expensive for data not accessed daily, since it targets frequent, high-speed access. Tier 2 is cheaper than Tier 1 but still aimed at more regular use. Tier 4 is typically a deeper archive with even longer retrieval times and sometimes offline storage, which can be impractical for timely tax-related access.