For Amazon EC2 Reserved Instances, which term length provides the greatest cost savings?
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Correct answer: 3 years.
Why this is the answer
Amazon EC2 Reserved Instances offer significant cost savings compared to On-Demand pricing, and the savings generally increase with a longer commitment period. A 3-year term provides the greatest cost savings among the given options because AWS rewards longer commitments with deeper discounts. While a 1-year term offers some savings, a 3-year term provides a substantially higher discount. A 2-year term would offer more savings than a 1-year term but less than a 3-year term. A 5-year term is not an available option for EC2 Reserved Instances; the maximum commitment period is 3 years.
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