AWS Certified Cloud Practitioner
Get started today
Ultimate access to all questions.
Deep dive into the quiz with AI chat providers.
We prepare a focused prompt with your quiz and certificate details so each AI can offer a more tailored, in-depth explanation.
A company runs a web application on Amazon EC2 instances. The application has consistent usage and is expected to run indefinitely. Which EC2 instance purchasing option will meet these requirements MOST cost-effectively?
Exam-Like
Community
RRitesh
A
1-year All Upfront Reserved Instances
B
1-year No Upfront Reserved Instances
C
3-year All Upfront Reserved Instances
D
3-year No Upfront Reserved Instances
Explanation:
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
Comments
Loading comments...