SAP-C02 Question 524
Single answerA financial services company is planning to migrate its on-premises data processing workloads to AWS. These workloads are expected to run 24/7 for the next three years with consistent CPU usage. The company is cost-conscious and wants to optimize its cloud spending while maintaining performance. Which pricing model should they adopt for their EC2 instances to achieve the most cost-efficient solution?
- A
On-Demand Instances
- B
Spot Instances
- C
Reserved Instances (3-Year Term, All Upfront)
- D
Savings Plans (Compute Savings Plan)
Show answer and explanation
Correct answer: C
Explanation
For workloads that are predictable, consistent, and run 24/7 for the next three years, a 3-Year All Upfront Reserved Instance is the most cost-effective pricing model. While Savings Plans provide flexibility, Reserved Instances offer deeper discounts for fixed usage patterns, making them the best choice in this scenario.
- A. Incorrect.
On-Demand Instances are the most flexible option but are the least cost-efficient for workloads running 24/7 over a long period. These are suitable for short-term or unpredictable workloads.
- B. Incorrect.
Spot Instances offer the lowest cost but are not suitable for workloads that require consistent availability since they can be interrupted at any time if capacity is reclaimed by AWS.
- C. Correct.
Reserved Instances (3-Year Term, All Upfront) provide the highest cost savings for workloads with predictable and consistent usage over a long period, such as 24/7 workloads for three years.
- D. Incorrect.
Savings Plans (Compute Savings Plan) offer flexibility across instance families and regions, but the cost savings are generally lower than Reserved Instances for workloads with a fixed usage pattern like this one.