SOA-C02: What should company do to maximize cost savings while committing to pricing model that offers flexibility to make changes

Table of Contents

Question
Answer
Explanation
Reference

Question

A company has a core application that must run 24 hours a day, 7 days a week. The application uses Amazon EC2. AWS Fargate, and AWS Lambda. The company uses a combination of operating systems across different AWS Regions. The company needs to maximize cost savings while committing to a pricing model that offers flexibility to make changes. What should the company do to meet these requirements?

A. Purchase a Compute Savings Plan that is based on Savings Plans recommendations
B. Purchase an EC2 Instance Savings Plan that covers the EC2 instance types and the Fargate and Lambda vCPU equivalents.
C. Purchase a Reserved Instance for the instance types, operating systems, Region, and tenancy,
D. Use EC2 Spot Instances that match the type and size of existing instances that run in each Region.

Answer

A. Purchase a Compute Savings Plan that is based on Savings Plans recommendations

Explanation

The correct answer is A. Purchase a Compute Savings Plan that is based on Savings Plans recommendations.

Savings Plans is a flexible pricing model that offers significant savings on AWS compute usage, such as EC2, Fargate, and Lambda. Savings Plans allows you to commit to a consistent amount of compute usage (measured in dollars per hour) for a one-year or three-year term, and in exchange, you receive a lower rate for that usage.

There are two types of Savings Plans: Compute Savings Plans and EC2 Instance Savings Plans. Compute Savings Plans provide the most flexibility and the highest savings, as they apply to any compute usage across any Region, any instance family, any operating system, any tenancy, and any AWS service that is compute-optimized, such as Fargate and Lambda. EC2 Instance Savings Plans provide less flexibility but more savings than Compute Savings Plans, as they apply to a specific instance family within a Region and require a consistent usage of individual instance sizes.

To purchase a Savings Plan, you can use the AWS Cost Explorer, which provides recommendations based on your historical compute usage. You can also customize your Savings Plan based on your preferences and needs. You can monitor your Savings Plan utilization and coverage using the AWS Cost Management tools.

In this case, the company needs to maximize cost savings while committing to a pricing model that offers flexibility to make changes. Therefore, the best option is to purchase a Compute Savings Plan that is based on Savings Plans recommendations. This way, the company can benefit from the lowest possible rate for its compute usage across different AWS services, Regions, operating systems, and instance types. The company can also adjust its compute usage as needed without affecting its savings.

The other options are not correct for the following reasons:

B. Purchase an EC2 Instance Savings Plan that covers the EC2 instance types and the Fargate and Lambda vCPU equivalents.

This option is not correct, as EC2 Instance Savings Plans do not apply to Fargate and Lambda usage. EC2 Instance Savings Plans only apply to EC2 usage within a specific instance family and Region. Fargate and Lambda are different AWS services that are compute-optimized, and they require a Compute Savings Plan to receive savings.

C. Purchase a Reserved Instance for the instance types, operating systems, Region, and tenancy.

This option is not correct, as Reserved Instances do not apply to Fargate and Lambda usage. Reserved Instances are another pricing model that offers savings on EC2 usage by reserving capacity for a one-year or three-year term. However, Reserved Instances are more restrictive than Savings Plans, as they require you to specify the instance type, operating system, Region, and tenancy upfront. They also do not provide savings for Fargate and Lambda usage, which are different AWS services that are compute-optimized.

D. Use EC2 Spot Instances that match the type and size of existing instances that run in each Region.

This option is not correct, as EC2 Spot Instances do not guarantee availability or reliability for the company’s core application. EC2 Spot Instances are another pricing model that offers savings on EC2 usage by using spare capacity in the AWS cloud. However, EC2 Spot Instances are subject to interruption at any time by AWS when the demand for capacity increases or the price exceeds your maximum bid. Therefore, they are not suitable for running applications that require 24/7 availability or predictable performance. They also do not provide savings for Fargate and Lambda usage, which are different AWS services that are compute-optimized.

Reference

Amazon AWS Certified SysOps Administrator – Associate certification exam practice question and answer (Q&A) dump with detail explanation and reference available free, helpful to pass the Amazon AWS Certified SysOps Administrator – Associate exam and earn Amazon AWS Certified SysOps Administrator – Associate certification.