AWS Certified Cloud Practitioner (CLF-C02)Cloud Technology and ServicesMedium

A software company runs a mix of EC2, Fargate, and Lambda workloads across multiple instance families and Regions. It wants to commit to a consistent hourly spend for one year to receive a discount, while retaining the flexibility to change instance types, sizes, and compute services without losing the discount. Which pricing option should the company choose?

  1. AEC2 Savings Plans
  2. BStandard Reserved Instances
  3. CConvertible Reserved Instances
  4. DSpot Instances
Show answer & explanation

Correct answer: A. EC2 Savings Plans

Savings Plans provide discounts in exchange for a commitment to a consistent amount of compute usage (measured in $/hour) for 1 or 3 years, and the discount automatically applies across EC2 instance families, sizes, Regions, and even Fargate/Lambda usage.

Why the other options are wrong

  • B. Standard Reserved Instances lock in a specific instance family/Region and don't extend to Fargate or Lambda.
  • C. Convertible Reserved Instances allow instance type changes but still don't cover Fargate or Lambda usage.
  • D. Spot Instances offer no guaranteed discount structure and can be interrupted at any time.

EC2 Savings Plans

A pricing model offering lower prices in exchange for a commitment to a consistent amount of compute usage ($/hour) for a 1- or 3-year term, flexible across instance families and compute services.

  • Covers EC2, Fargate, and Lambda usage
  • More flexible than Reserved Instances
  • Discount based on committed hourly spend, not specific instance type

Memory trick: Savings Plans = commit to spend, not to a specific server.

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