AWS Certified Cloud Practitioner
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A company is migrating its on-premises server to an Amazon EC2 instance. The server must stay active at all times for the next 12 months.
Which EC2 pricing option is the MOST cost-effective for the company's workload?
Real Exam
Community
RRitesh
A
On-Demand
B
Dedicated Hosts
C
Spot Instances
D
Reserved Instances
Explanation:
Explanation
Reserved Instances are the most cost-effective option for this scenario because:
-
Long-term commitment: The company needs the server to stay active for 12 months, which aligns perfectly with the 1-year commitment period of Reserved Instances
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Significant cost savings: Reserved Instances offer up to 75% discount compared to On-Demand pricing when you commit to a 1-year term
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Guaranteed capacity: Unlike Spot Instances, Reserved Instances provide guaranteed availability for the entire duration
-
Predictable billing: The company can budget accurately for the entire 12-month period
Why other options are less cost-effective:
-
On-Demand: Most expensive option with no discounts for long-term usage
-
Dedicated Hosts: More expensive physical servers dedicated to a single customer, not cost-effective for this use case
-
Spot Instances: Cheapest option but can be terminated at any time, which violates the requirement for the server to "stay active at all times"
Since the workload requires continuous availability for a predictable 12-month period, Reserved Instances provide the optimal balance of cost savings and reliability.
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