You are Devops Engineer for a large organization. The company wants to start using Cloudformation templates to start building their resources in AWS. You are getting requirements for the templates from various departments, such as the networking, security, application etc. What is the best way to architect these Cloudformation templates.

Answer options:

A.Use a single Cloudformation template, since this would reduce the maintenance overhead on the templates itself.
B.Create separate logical templates, for example, a separate template for networking, security, application etc. Then nest the relevant templates.
C.Consider using Elastic beanstalk to create your environments since Cloudformation is not built for such customization.
D.Consider using Opsworks to create your environments since Cloudformation is not built for such customization.

Answer - B
The AWS documentation mentions the following
As your infrastructure grows, common patterns can emerge in which you declare the same components in each of your templates. You can separate out these common components and create dedicated templates for them. That way, you can mix and match different templates but use nested stacks to create a single, unified stack. Nested stacks are stacks that create other stacks. To create nested stacks, use the AWS::CloudFormation::Stackresource in your template to reference other templates.
For more information on Cloudformation best practises, please visit the below url
http://docs.aws.amazon.com/AWSCloudFormation/latest/UserGuide/best-practices.html