Question #1283
Which Amazon EC2 Reserved Instances term duration maximizes cost savings when committing to a long-term capacity reservation?
1 year
2 years
3 years
5 years
Explanation
Amazon EC2 Reserved Instances (RIs) provide significant discounts compared to On-Demand pricing, with longer terms offering greater savings. AWS offers RIs for 1-year or 3-year terms. While a 3-year term requires a longer commitment, it provides the highest discount rate, maximizing cost savings over time. Option D (5 years) is invalid because AWS does not offer 5-year RIs. Option B (2 years) is also incorrect, as AWS does not support 2-year terms. Option A (1 year) offers lower savings compared to the 3-year term. Therefore, choosing the 3-year term (C) is the best way to optimize cost savings for long-term capacity reservations.
Key Points:
- Reserved Instances offer discounts for committing to 1 or 3 years.
- Longer terms (3 years) provide higher discounts.
- AWS does not offer 2-year or 5-year Reserved Instance terms.
Answer
The correct answer is: C