SAP-C02 Question 337
Single answerA company is running multiple compute-heavy applications on Amazon EC2 instances with predictable, consistent usage patterns. The applications are expected to run 24/7 for the next three years. The company is looking to minimize costs while ensuring the applications continue to run without disruptions. Which pricing model should the company choose?
- A
On-Demand Instances
- B
Spot Instances
- C
Reserved Instances with a 3-year term and All Upfront payment
- D
Savings Plans with a 3-year term and Compute Savings Plan
Show answer and explanation
Correct answer: C
Explanation
For compute-heavy applications with consistent 24/7 usage over three years, Reserved Instances with a 3-year term and All Upfront payment provide the highest cost savings. While Savings Plans are also a viable alternative for flexibility, Reserved Instances are specifically designed for predictable workloads and offer a greater discount for such scenarios.
- A. Incorrect.
On-Demand Instances are the most flexible option but are significantly costlier for long-term, predictable usage. This model is not suitable for a 24/7 workload over three years.
- B. Incorrect.
Spot Instances are cost-efficient for interruptible workloads, but they are not suitable for applications requiring consistent availability over a long period, such as the described scenario.
- C. Correct.
Reserved Instances with a 3-year term and All Upfront payment offer the highest cost savings for predictable workloads that are expected to run long-term, making them the ideal choice for this scenario.
- D. Incorrect.
Savings Plans with a 3-year term and Compute Savings Plan provide flexibility across instance families and regions but may not offer the same level of cost savings as Reserved Instances for a single, predictable workload.