Answer: Savings Plans

The correct answer is B, Savings Plans. Amazon EC2 Savings Plans offer significant cost savings over On-Demand Instances by allowing you to commit to a consistent amount of compute usage for a 1-year or 3-year term. This commitment results in savings of up to 72% compared to On-Demand pricing. Any usage up to the commitment is charged at the discounted Savings Plan rate, and any usage beyond the commitment is charged at regular On-Demand Instance rates. This makes Savings Plans the most cost-effective option for an application that requires continuous availability over a 12-month period. Spot Instances (A) are not the best choice because they can be interrupted with short notice, which is not suitable for an always-on application. Dedicated Hosts (C) provide physical EC2 resources but do not offer the same cost savings as Savings Plans. On-Demand Instances (D) are more expensive than Savings Plans and do not provide any long-term cost benefits.

Author: LeetQuiz Editorial Team