Question #1069
A company is deploying a fault-tolerant application that can handle instance interruptions. Which EC2 instance purchasing option provides the HIGHEST cost savings compared to On-Demand pricing?
Spot Instances
Convertible Reserved Instances
Standard Reserved Instances
Dedicated Hosts
Explanation
Spot Instances (A) are the correct answer because they offer the highest cost savings (up to 90% off On-Demand pricing) by leveraging unused EC2 capacity. They are specifically designed for fault-tolerant workloads that can withstand interruptions, which aligns with the question's requirements.
Other options are less optimal:
- B. Convertible Reserved Instances: Offer lower discounts (up to 54%) compared to Spot and require a long-term commitment.
- C. Standard Reserved Instances: Provide significant discounts (up to 72%) but require upfront payment and long-term commitments, making them less flexible and cost-effective than Spot for interruptible workloads.
- D. Dedicated Hosts: Are more expensive due to dedicated physical server costs and are used for compliance/licensing needs, not cost savings.
Key Takeaway: Spot Instances maximize savings for fault-tolerant applications, while Reserved Instances and Dedicated Hosts suit different use cases with higher costs.
Answer
The correct answer is: A