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Which AWS resource can help a company reduce its costs in exchange for a usage commitment when using Amazon EC2 instances?
A
Compute Savings Plans
B
Auto Scaling group
C
On-Demand Instance
D
EC2 instance store
Explanation:
Compute Savings Plans is the correct answer because:
Savings Plans are AWS pricing models that offer significant discounts (up to 72%) in exchange for a commitment to a consistent amount of usage (measured in $/hour) for a 1- or 3-year term
Compute Savings Plans specifically apply to EC2 instance usage, regardless of instance family, size, AZ, region, OS, or tenancy
This provides flexibility while still offering substantial cost savings compared to On-Demand pricing
Why the other options are incorrect:
Auto Scaling group: This is an EC2 feature for automatically scaling capacity up or down based on demand, but it doesn't provide cost savings through commitments
On-Demand Instance: This is the standard pay-as-you-go pricing with no commitments and no discounts
EC2 instance store: This refers to temporary block-level storage physically attached to the host computer, not a cost-saving mechanism
Savings Plans are AWS's recommended way to save on compute costs when you can commit to consistent usage patterns.