Flexible Pricing Model for Cost Optimization
Question
You are working in a start-up company, and you need to save the cost of Amazon EC2, AWS Fargate, and AWS Lambda.
You are looking for a flexible pricing model.
For example, you will be charged at a lower rate if you commit to $10/hour of compute usage.
Which AWS service can achieve this requirement?
Answers
Explanations
Click on the arrows to vote for the correct answer
A. B. C. D.Correct Answer - A.
Option A is CORRECT: Because Savings Plans is a flexible pricing model that provides low prices in exchange for commitment.
For its details, please check the following reference.
Option B is incorrect: Because AWS Reserved Instance is only for EC2 and does not help to reduce the cost of AWS Fargate or AWS Lambda.
Option C is incorrect: Because AWS Dedicated Host provides dedicated hardware, which does not help cut the cost.
Option D is incorrect: Because AWS Spot Instance is only for EC2 and not for AWS Fargate or AWS Lambda.
Reference:
https://docs.aws.amazon.com/savingsplans/latest/userguide/what-is-savings-plans.htmlThe AWS service that can achieve this requirement is the AWS Savings Plan (option A).
AWS Savings Plan is a flexible pricing model that offers lower rates on EC2, Fargate, and Lambda usage in exchange for a commitment to use a specific amount of compute power for a set period of time, typically 1 or 3 years.
Savings Plan offers two different types of savings plans: Compute Savings Plans and EC2 Instance Savings Plans.
Compute Savings Plans provide savings on EC2 instances and Fargate usage, regardless of the instance family, size, OS, or tenancy. Compute Savings Plans are best suited for workloads with flexible compute requirements, such as batch processing, containerized services, microservices, and web applications.
EC2 Instance Savings Plans offer savings on a specific instance family and size in a specific region. These plans are best suited for workloads with predictable compute requirements, such as production applications, database workloads, and enterprise applications.
Both Compute Savings Plans and EC2 Instance Savings Plans offer the flexibility to change instance families, sizes, OS, and tenancy as long as the overall commitment is met. Savings Plans are also automatically applied to the instances and Fargate tasks that match the attributes of the plan, without requiring any upfront payments or reservations.
In summary, AWS Savings Plan is a flexible pricing model that offers lower rates on EC2, Fargate, and Lambda usage in exchange for a commitment to use a specific amount of compute power for a set period of time. It's best suited for workloads with flexible or predictable compute requirements and offers the flexibility to change instance attributes while still meeting the commitment.
