A company wants to make an upfront commitment for continued use of its production Amazon EC2 instances in exchange for a reduced overall cost. Which pricing options meet these requirements with the LOWEST cost? (Choose two.)
We can rule out Spot instances since this is a production environment.
So the right answers are:
C. Reserved Instances: Reserved Instances provide a significant discount (up to 75%) compared to On-Demand pricing in exchange for a one-time upfront payment and/or a lower hourly rate. The more you commit, the greater the discount.
D. Savings Plans: Savings Plans offer flexible pricing and savings on your AWS usage, with discounts of up to 72% compared to On-Demand pricing. With Savings Plans, you commit to a certain amount of usage (measured in dollars per hour) for a one- or three-year term, and receive a lower rate for that usage.
A. Spot Instances: These are spare EC2 instances available at lower prices, but they are not suitable for making upfront commitments as they are subject to termination if the capacity is needed by the system.
B. On-Demand Instances: On-Demand Instances are pay-as-you-go without upfront commitments, making them flexible but not the most cost-effective for long-term commitments.
C. Reserved Instances: Reserved Instances allow upfront commitments for a specific instance type in a particular region, offering significant cost savings compared to On-Demand Instances. They provide a lower overall cost in exchange for the commitment.
D. Savings Plans: Savings Plans provide significant cost savings in exchange for a commitment to a consistent amount of compute usage (measured in $/hr) for a 1 or 3-year period. They offer flexibility and cost savings similar to Reserved Instances.
E. Dedicated Hosts: Dedicated Hosts provide physical servers dedicated to your use. While they offer visibility and control over the placement of instances, they do not necessarily result in the lowest cost and are not based on the concept of upfront commitments for cost reduction.
Both Reserved Instances and Savings Plans allow you to make an upfront commitment for the use of EC2 instances, which results in significant cost savings compared to On-Demand Instances. However, Savings Plans tend to be more flexible than Reserved Instances, offering savings across a broader set of EC2 instance types, regions, and services.
C. Reserved Instances: Reserved Instances provide a significant discount (up to 75%) compared to On-Demand pricing in exchange for a one-time upfront payment and/or a lower hourly rate. The more you commit, the greater the discount.
D. Savings Plans: Savings Plans offer flexible pricing and savings on your AWS usage, with discounts of up to 72% compared to On-Demand pricing. With Savings Plans, you commit to a certain amount of usage (measured in dollars per hour) for a one- or three-year term, and receive a lower rate for that usage.
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