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A company wants to make an upfront commitment for continued use of its production Amazon EC2 instances in exchange for a reduced overall cost. Which pricing options meet these requirements with the LOWEST cost? (Select TWO.)
A
Spot Instances
B
On-Demand Instances
C
Reserved Instances
D
Savings Plans
E
Dedicated Hosts
Explanation:
Reserved Instances (C) and Savings Plans (D) are the correct answers because:
Allow you to make an upfront commitment (1-year or 3-year term) for EC2 instance usage
Provide significant discounts (up to 72% compared to On-Demand pricing)
Are specifically designed for production workloads with predictable usage patterns
Offer flexible pricing model with upfront commitment
Provide similar discounts to Reserved Instances (up to 72% savings)
Cover broader range of services beyond just EC2 instances
Offer more flexibility in instance family, size, and region changes
Spot Instances (A): Offer the lowest cost but don't require upfront commitment and can be interrupted
On-Demand Instances (B): No upfront commitment required, highest cost option
Dedicated Hosts (E): Physical servers dedicated to your use, but typically more expensive and don't specifically offer the lowest cost for production workloads
Both Reserved Instances and Savings Plans provide the lowest cost for production workloads when you can make an upfront commitment for continued usage.