CompTIA Cloud+ (CV0-004)Cloud ArchitectureHard
A cloud administrator is tasked with optimizing cloud costs for an application that has predictable, long-term resource requirements. The application runs continuously and its compute usage does not fluctuate significantly. Which pricing model would provide the most cost-effective solution for these compute resources?
- AReserved Instances / Savings Plans
- BSpot Instances
- CServerless Functions
- DOn-Demand Instances
Show answer & explanationAnswer & explanation
Correct answer: A. Reserved Instances / Savings Plans
Reserved Instances or Savings Plans offer significant discounts (often 30-70%) compared to On-Demand pricing in exchange for a commitment to a specific instance type or compute usage over a 1-year or 3-year term, making them ideal for predictable, long-running workloads.
Why the other options are wrong
- B. Spot instances offer deep discounts but are suitable only for fault-tolerant workloads that can tolerate interruptions, as instances can be reclaimed by the provider with short notice.
- C. Serverless functions are pay-per-execution, which can be cost-effective for intermittent or highly variable workloads, but for continuous, predictable usage, committed pricing models are often cheaper.
- D. On-Demand instances offer flexibility but are the most expensive option, not suitable for predictable, long-term workloads.
Reserved Instances / Savings Plans
Cloud pricing models that provide significant discounts (e.g., 30-70%) on compute resources in exchange for a commitment to a specific instance type, region, or compute usage over a 1-year or 3-year term. Ideal for stable, predictable workloads.
- Commitment-based pricing for cost savings
- Suitable for predictable, long-running workloads
- Offers substantial discounts over On-Demand
- Less flexible than On-Demand, more flexible than Spot
Memory trick: On-demand is flexible, Spot is cheap but risky, Reserved is steady savings.