As an IT administrator, you have been requested to manage the CloudFormation stacks for a set of developers in your company. A set of web and database developers will be working on the application. How would you design the CloudFormation stacks in the best way possible?

Answer options:

A.CloudFormation is not the right fit. Use OpsWork instead.
B.Create one stack for the web and database developers.
C.Create separate CloudFormation stacks for the web and database developers.
D.Define separate EC2 instances since defining CloudFormation can get cumbersome.

Answer – C
Option A is incorrect because CloudFormation is best for creating and maintaining all the infrastructure resources in the cloud environment.
Option B is incorrect because when your stack grows in scale and broadens in scope, managing a single stack can be cumbersome and time-consuming. Also, coordinating and communicating updates can become difficult.
Option C is CORRECT because (a) having multiple (or sub) stacks is easier to maintain, (b) there is a clear separation of ownership and concerns, (c) better chances of you staying within the limit for `Template body size` which happens to be 460,800 bytes, and (d) you can reuse common template patterns. See the "More information..." section for more details.
Option D is incorrect because you can provision and maintain the infrastructure if the CloudFormation templates are created correctly.
More information on CloudFormation Best Practices:
The following use case scenario is given in the AWS documentation to support the answer:
For example, imagine a team of developers and engineers who own a website that is hosted on autoscaling instances behind a load balancer. Because the website has its own lifecycle and is maintained by the website team, you can create a stack for the website and its resources. Now imagine that the website also uses back-end databases, where the databases are in a separate stack that is owned and maintained by database administrators. Whenever the website team or database team needs to update their resources, they can do so without affecting each other`s stack. If all resources were in a single stack, coordinating and communicating updates can be difficult.
For more information on Cloudformation best practices, please visit the below URL
http://docs.aws.amazon.com/AWSCloudFormation/latest/UserGuide/best-practices.html