A company is migrating databases to Amazon RDS for PostgreSQL and applications to Amazon EC2 instances. The company wants to optimize costs for long-running workloads most cost-effectively. Which solution meets this requirement?
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Correct answer: Purchase Reserved Instances for a 3 year term with the All Upfront option for the Amazon RDS for PostgreSQL workloads. Purchase a 3 year EC2 Instance Savings Plan with the All Upfront option for the EC2 instances..
Why this is the answer
The most cost-effective solution for long-running workloads is to commit to a longer term and pay upfront. Reserved Instances (RIs) for RDS and EC2 Instance Savings Plans offer significant discounts compared to On-Demand pricing. A 3-year term provides a greater discount than a 1-year term. Paying All Upfront yields the largest discount compared to Partial Upfront or No Upfront options because AWS receives the payment in full at the beginning of the term. Therefore, combining 3-year All Upfront RIs for RDS and 3-year All Upfront EC2 Instance Savings Plans maximizes cost savings for these long-running resources. Other options involve shorter terms, less upfront payment, or less cost-effective purchasing models like On-Demand, which result in higher overall costs.
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