What is a key financial benefit of archiving?

Study for the GISCI Database Design and Management Exam with flashcards and multiple choice questions. Each question includes hints and explanations to help you prepare. Get ready for success!

The choice highlighting cost reduction through using low-cost storage effectively captures a significant financial advantage of archiving. When organizations archive data, they typically transfer less frequently accessed information from high-performance, expensive storage solutions to more economical options. This transition allows businesses to save on both hardware costs and ongoing operational expenses associated with managing active data.

Archiving helps reduce the overall financial burden by utilizing tiered storage strategies; less critical data can be stored on slower, cheaper media, thus freeing up more costly resources for active data that demands higher speed retrieval. As organizations regularly accumulate large volumes of data, the need to maintain efficient storage solutions avails them of meaningful savings in data management and operational costs.

In contrast, other options would not convey the same financial benefit: increasing expenses on data storage and higher maintenance costs would be straightforward drawbacks, while immediate revenue generation doesn't directly relate to the archiving process, which primarily focuses on managing and storing data efficiently rather than generating income in the short term.

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