Under the assumption that the setups indicate a straight line connection from A to C without C having a direct connection to the device (as shown in A), My understanding is that if the device goes down all subsidiaries will also go down. I've been advised to create a separate Parent/Child dependency for each remote site just out of principle (just as shown in setup B). This will suppress only the site that is down without effecting the other sites (or falsly alerting their status).
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This is how I usually do it at customer sites as well. Essentially, for a remote office we use the edge router as the parent and the remainder of the site as children for the first dependency. Then moving in from the router, we create a new parent for the firewall and have the remainder of its downstream neighbors in as children. The more you complete this, the more granular your alert suppression will be.
It is hard to wrap your brain around it but if you keep asking yourself, which nodes would no longer be reachable by Orion if this node goes down, the answer to this is going to be your children.
I also recommend using a plethora of custom properties to help in auto creating dependency groups along with not equals to operators to exclude devices that may be the parent.
Awesome! Thanks guys!