Answer: 3-year All Upfront Reserved Instances

## Explanation For applications with **consistent usage** that are expected to run **indefinitely**, **3-year All Upfront Reserved Instances** provide the **most cost-effective** option because: - **Longer commitment = Higher discount**: 3-year Reserved Instances offer greater discounts compared to 1-year options - **All Upfront payment = Maximum savings**: Paying the entire amount upfront provides the highest discount rate among Reserved Instance payment options - **Indefinite operation**: Since the application will run continuously, committing to a longer term ensures consistent cost savings over time ### Cost Comparison: - **3-year All Upfront**: Highest discount (up to 72% off on-demand pricing) - **3-year No Upfront**: Lower discount than All Upfront - **1-year All Upfront**: Good discount but less than 3-year options - **1-year No Upfront**: Lowest discount among Reserved Instances ### Key Points: - Reserved Instances are ideal for predictable, steady-state workloads - The longer the commitment and more upfront payment, the greater the savings - For indefinite operations, longer terms provide better long-term cost optimization

Author: Ritesh Yadav