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A user wants to save costs by committing to a 1-year usage but accidentally selects On-demand pricing. What is the main issue with this choice?

medium📝 Debug Q14 of 15
AWS - EC2 Fundamentals
A user wants to save costs by committing to a 1-year usage but accidentally selects On-demand pricing. What is the main issue with this choice?
AOn-demand pricing does not offer cost savings for long-term commitment
BOn-demand pricing requires upfront payment for 1 year
COn-demand pricing instances cannot be launched immediately
DOn-demand pricing instances are always interrupted
Step-by-Step Solution
Solution:
  1. Step 1: Understand On-demand pricing characteristics

    On-demand pricing charges per use with no upfront or commitment discounts.
  2. Step 2: Identify the cost-saving option

    Reserved instances offer savings with 1 or 3 year commitments, unlike On-demand.
  3. Final Answer:

    On-demand pricing does not offer cost savings for long-term commitment -> Option A
  4. Quick Check:

    Commitment savings = Reserved, not On-demand [OK]
Quick Trick: Commitment savings only with Reserved pricing [OK]
Common Mistakes:
  • Thinking On-demand requires upfront payment
  • Believing On-demand instances are delayed
  • Confusing interruption with Spot pricing

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