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Which EC2 pricing model should they choose and why?

hard📝 Best Practice Q15 of 15
AWS - EC2 Fundamentals
A company runs a critical web application that must be available 24/7 with predictable costs. They also want to reduce expenses by committing to usage. Which EC2 pricing model should they choose and why?
ASpot instances, because they are cheapest and can be interrupted
BOn-demand instances, because they have no commitment and flexible pricing
CReserved instances, because they offer cost savings with a commitment and stable availability
DDedicated hosts, because they provide physical isolation
Step-by-Step Solution
Solution:
  1. Step 1: Analyze availability and cost needs

    Critical 24/7 apps need stable availability and predictable costs.
  2. Step 2: Match pricing models to needs

    Reserved instances provide cost savings with 1 or 3 year commitment and stable availability; Spot can be interrupted; On-demand is flexible but more costly.
  3. Final Answer:

    Reserved instances, because they offer cost savings with a commitment and stable availability -> Option C
  4. Quick Check:

    Critical + savings + commitment = Reserved [OK]
Quick Trick: Stable + savings + commitment = Reserved instances [OK]
Common Mistakes:
  • Choosing Spot for critical apps despite interruptions
  • Picking On-demand for cost savings
  • Confusing Dedicated hosts with pricing benefits

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