A company needs EC2 instances for an application that will run continuously for more than one year. Which EC2 purchase option is the most cost-effective for this scenario?
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Correct answer: Reserved Instances.
Why this is the answer
Reserved Instances (RIs) are the most cost-effective option for EC2 instances that will run continuously for more than one year because they offer a significant discount (up to 75%) compared to On-Demand pricing in exchange for a commitment to a specific instance configuration for a 1-year or 3-year term. Dedicated Instances provide physical isolation but do not offer a cost advantage for long-term, continuous use over RIs. Spot Instances are highly cost-effective but are suitable only for fault-tolerant workloads that can tolerate interruptions, as AWS can terminate them with short notice. On-Demand Instances are flexible but are the most expensive option for continuous, long-running workloads.
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