A company needs an Amazon EC2 instance for a rightsized database server that must run constantly for 1 year. Which EC2 instance purchasing option will meet these requirements MOST cost-effectively?
A. Standard Reserved Instance
"Standard Reserved Instances typically provide the highest discount levels. One-year Standard Reserved Instances provide a similar discount to three-year Convertible Reserved Instances."
https://aws.amazon.com/blogs/aws/ec2-reserved-instance-update-convertible-ris-and-regional-benefit/#:~:text=Convertible%20Reserved%20Instances%20%2DConvertible%20RIs,Reserved%20Instance%20at%20any%20time.
Answer is A. Standard Reserved Instance.
https://aws.amazon.com/ec2/pricing/reserved-instances/pricing/
Standard Reserved Instances provide you with a significant discount (up to 72%) compared to On-Demand Instance pricing, and can be purchased for a 1-year or 3-year term. Customers have the flexibility to change the Availability Zone, the instance size, and networking type of their Standard Reserved Instances.
Purchase Convertible Reserved Instances if you need additional flexibility, such as the ability to use different instance families, operating systems, or tenancies over the Reserved Instance term. Convertible Reserved Instances provide you with a significant discount (up to 66%) compared to On-Demand Instances and can be purchased for a 1-year or 3-year term.
Reserved Instances provide a significant discount compared to On-Demand Instances, making them a cost-effective choice for long-term, steady-state workloads. By committing to a Reserved Instance, you are reserving capacity for a specific instance type in a specific Availability Zone for a defined duration. This reservation allows you to achieve cost savings compared to running the instance on-demand.
The "Standard" Reserved Instance option provides the highest discount among the Reserved Instance types. It offers a fixed discount over the On-Demand instance pricing for the term of the reservation, which in this case would be 1 year.
Convertible Reserved Instances provide flexibility to change the instance type within the same instance family, but they usually have a slightly higher price compared to Standard Reserved Instances.
1. Must run constantly for 1 year: it discards option D.
2. Most cost-effectively: it discards options C and B (more expensive than standard reserved instances).
So, A is correct.
From: https://docs.aws.amazon.com/whitepapers/latest/cost-optimization-reservation-models/standard-vs.-convertible-offering-classes.html
Standard Reserved Instances typically provide the highest discount levels. One-year Standard Reserved Instances provide a similar discount to three-year Convertible Reserved Instances.
I think it's A, keyword is MOST cost-effective. In the question's context, "rightsized" means to me you likely won't change your instance in the following year -> standard reserved instance. Convertible reserved instances are about changing resources dynamically when required.
Additionally:
"Standard Reserved Instances typically provide the highest discount levels. One-year Standard Reserved Instances provide a similar discount to three-year Convertible Reserved Instances."
https://docs.aws.amazon.com/whitepapers/latest/cost-optimization-reservation-models/standard-vs.-convertible-offering-classes.html
Standard Reserved Instances typically provide the highest discount levels. One-year Standard Reserved Instances provide a similar discount to three-year Convertible Reserved Instances.
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