A company will commit to ongoing use of its production Amazon EC2 instances to reduce overall costs. Which pricing options provide the lowest cost when making such a commitment? (Choose two.)
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Correct answer: Reserved Instances, Savings Plans.
Why this is the answer
Reserved Instances (RIs) and Savings Plans both offer significant cost reductions for a commitment to ongoing EC2 instance usage. RIs provide a discounted hourly rate in exchange for committing to a specific instance type and region for a 1- or 3-year term. Savings Plans offer even greater flexibility, applying discounts across various instance families, regions, and even compute services (EC2, Fargate, Lambda) in exchange for a commitment to a consistent amount of compute usage (measured in $/hour) for a 1- or 3-year term. Spot Instances are for fault-tolerant workloads and can be interrupted, making them unsuitable for production. On-Demand Instances offer no commitment discounts. Dedicated Hosts are for specific licensing requirements and are generally more expensive.
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