Explanation

AWS Compute Optimizer is the correct service for rightsizing EC2 instances because:

• Purpose: AWS Compute Optimizer analyzes the configuration and resource utilization of your EC2 instances to identify optimal instance types based on your workload patterns
• Rightsizing: It specifically helps identify when instances are over-provisioned (low usage) or under-provisioned (high usage) and recommends appropriate instance types
• Cost Optimization: By recommending the right-sized instances, it helps reduce costs while maintaining performance
• Alternative services:
  • AWS Config: Used for compliance auditing and resource configuration tracking
  • AWS Cost Anomaly Detection: Identifies unusual spending patterns
  • AWS Budgets: Sets spending limits and alerts for cost management

When EC2 instances have low usage, Compute Optimizer can recommend smaller instance types or different instance families that better match the actual workload requirements, leading to significant cost savings.