Discover why Reserved Instances are the most cost-effective AWS instance purchase option for stable one-year production workloads. Learn about their benefits, cost savings, and use cases.
Table of Contents
Question
For a stable one-year production workload, which AWS instance purchase option is the most cost-effective?
A. Dedicated Hosts
B. Reserved Instances
C. On-Demand Instances
D. Spot Instances
Answer
B. Reserved Instances
Explanation
Reserved Instances offer significant discounts and are suitable for stable, long-term workloads.
For a stable one-year production workload, Reserved Instances (RIs) are the most cost-effective AWS EC2 instance purchase option. This is because RIs provide significant cost savings compared to On-Demand Instances, while ensuring consistent capacity for predictable workloads.
Why Reserved Instances Are Ideal
- Cost Savings: Reserved Instances offer discounts of up to 72% compared to On-Demand pricing for a one-year commitment. This makes them highly economical for steady, non-variable workloads.
- Predictability: Since the workload is stable and predictable, committing to a specific instance type and configuration aligns perfectly with the RI model. This eliminates the need for flexibility provided by other options like On-Demand or Spot Instances.
- Capacity Guarantee: RIs ensure that the required compute capacity is reserved and available when needed, which is critical for production environments.
Key Features of Reserved Instance
- Commitment Period: Available in one-year or three-year terms.
- Discounts: Up to 40% savings for a one-year term and up to 75% for a three-year term compared to On-Demand pricing.
- Flexibility Options: Convertible RIs allow changes in instance attributes (e.g., instance family or size) during the term, though at slightly reduced discounts.
Use Case Alignment
For a stable production workload that runs consistently over a year, Reserved Instances strike the perfect balance between cost-efficiency and operational reliability. By choosing Reserved Instances, you can significantly reduce costs while ensuring your workload operates seamlessly throughout the year.
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