Table of Contents
Question
A company seeks cost savings in exchange for a commitment to use a specific amount of an AWS service or category of AWS services for 1 year or 3 years.
Which AWS pricing model or offering will meet these requirements?
A. Pay-as-you-go pricing
B. Savings Plans
C. AWS Free Tier
D. Volume discounts
Answer
B. Savings Plans
Explanation
The correct answer is B. Savings Plans.
Savings Plans are a pricing model offered by AWS that allow customers to commit to using a specific amount of AWS services or categories of services for a period of 1 year or 3 years, in exchange for a discount on the hourly rates of those services. This pricing model is designed to help customers achieve cost savings by committing to a certain level of usage.
With Savings Plans, customers can choose from a variety of service categories, such as EC2 instances, RDS instances, S3 storage, and more. They can then commit to using a specific amount of resources within that category for a fixed period of time. In exchange for this commitment, AWS provides a discount on the hourly rates of the services used within that category.
Savings Plans are a good fit for companies that have a predictable and steady workload, and that can commit to using a specific amount of AWS resources for a longer period of time. They can help customers achieve cost savings by providing a discount on the hourly rates of the services used, and can also help customers better plan and budget their AWS usage.
The other options are not correct because:
- A. Pay-as-you-go pricing is a model in which customers pay for the resources they use on an hourly or per-use basis, without any commitment to use a specific amount of resources. This pricing model does not provide any discounts for committing to a specific amount of usage.
- C. AWS Free Tier is a program that provides free usage of certain AWS services up to a certain limit. However, the free usage is limited to specific services and is not tied to a commitment to use a specific amount of resources.
- D. Volume discounts are discounts that AWS provides to customers who use a large amount of resources. However, these discounts are not tied to a commitment to use a specific amount of resources for a fixed period of time, and are instead based on the total amount of resources used over a given period of time.
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