Application instances generate 1 TB/day of logs; logs must be actively queryable for 30 days and retained for two years for compliance. Implement a compliant, low-cost Google-recommended storage solution.

The correct solution uses Cloud Logging agents to capture logs, which is the recommended method for collecting logs from instances. Exporting logs to a regional Cloud Storage bucket via a sink is cost-effective for long-term storage. An object lifecycle rule automatically transitions data to Coldline after one month, aligning with the 30-day active query requirement and reducing costs. A bucket-level retention policy with Bucket Lock ensures compliance for the two-year retention period by preventing accidental or malicious deletion. Incorrect options: Running a daily cron job is less reliable and not the recommended way to collect logs compared to the Cloud Logging agent. Exporting logs to BigQuery is suitable for analytics but generally more expensive for raw log storage and long-term retention than Cloud Storage, especially for 1 TB/day. BigQuery partition expiration only addresses the 30-day active query requirement, not the two-year retention.