Learn the most cost-effective solution for optimizing long-running Amazon RDS for PostgreSQL and EC2 workloads. Detailed explanation of reserved instances and savings plans. Prepare for the AWS Certified Solutions Architect Associate SAA-C03 exam.
Table of Contents
Question
A company is migrating its databases to Amazon RDS for PostgreSQL. The company is migrating its applications to Amazon EC2 instances. The company wants to optimize costs for long-running workloads.
Which solution will meet this requirement MOST cost-effectively?
A. Use On-Demand Instances for the Amazon RDS for PostgreSQL workloads. Purchase a 1 year Compute Savings Plan with the No Upfront option for the EC2 instances.
B. Purchase Reserved Instances for a 1 year term with the No Upfront option for the Amazon RDS for PostgreSQL workloads. Purchase a 1 year EC2 Instance Savings Plan with the No Upfront option for the EC2 instances.
C. Purchase Reserved Instances for a 1 year term with the Partial Upfront option for the Amazon RDS for PostgreSQL workloads. Purchase a 1 year EC2 Instance Savings Plan with the Partial Upfront option for the EC2 instances.
D. Purchase Reserved Instances for a 3 year term with the All Upfront option for the Amazon RDS for PostgreSQL workloads. Purchase a 3 year EC2 Instance Savings Plan with the All Upfront option for the EC2 instances.
Answer
The most cost-effective solution for optimizing long-running Amazon RDS for PostgreSQL databases and EC2 instances is:
D. Purchase Reserved Instances for a 3 year term with the All Upfront option for the Amazon RDS for PostgreSQL workloads. Purchase a 3 year EC2 Instance Savings Plan with the All Upfront option for the EC2 instances.
Explanation
For Amazon RDS, Reserved Instances provide significant cost savings compared to On-Demand pricing. By committing to a 3-year term and paying all upfront, you can get the maximum discount. This is ideal for long-running, predictable database workloads.
Similarly, EC2 Instance Savings Plans allow you to commit to a consistent amount of compute usage (measured in $/hour) for a 1 or 3 year term. Again, committing to a longer term (3 years) and paying all upfront provides the biggest discount. The plans automatically apply to any EC2 instance usage regardless of instance family, size, OS or tenancy. This gives you flexibility while still optimizing costs.
The other options are not as cost-effective:
Option A uses more expensive On-Demand pricing for RDS.
Options B and C use shorter 1 year terms and no or partial upfront payments, so the discounts are lower.
In summary, for long-running, predictable RDS and EC2 workloads, making a 3 year upfront commitment with Reserved Instances (for RDS) and Instance Savings Plans (for EC2) will provide the maximum cost savings. The longer commitment and upfront payment you make, the bigger the discount you receive compared to On-Demand pricing.
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