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A company uses Amazon EC2 instances to run its application. The application needs to be available and running continuously for three or more years. What type of EC2 instance should the company purchase for a discount on the EC2 pricing?
A
Reserved Instances
B
Spot Instances
C
On-Demand Instances
D
EC2 Fleet
Explanation:
Reserved Instances are the correct choice for this scenario because:
Long-term commitment: Reserved Instances provide significant discounts (up to 75%) compared to On-Demand pricing when you commit to a 1-year or 3-year term
Continuous availability: For applications that need to run continuously for 3+ years, Reserved Instances guarantee capacity and provide cost savings
Predictable billing: Reserved Instances offer predictable pricing for long-term workloads
Why other options are incorrect:
Spot Instances: These offer the lowest prices but can be interrupted with short notice, making them unsuitable for applications requiring continuous availability
On-Demand Instances: These provide no discounts and are the most expensive option for long-term usage
EC2 Fleet: This is a management feature that allows you to manage capacity across different instance types and purchasing options, not a specific discount pricing model
For workloads with predictable usage patterns and long-term requirements, Reserved Instances provide the best cost optimization while ensuring availability.