AWS Certified Cloud Practitioner (CLF-C02)Cloud ConceptsEasy

A small non-profit organization is planning to host its new donation platform on AWS. They have a limited budget and want to ensure their infrastructure costs are predictable each month. Which AWS billing feature should they primarily consider to achieve cost predictability for their compute resources?

  1. AAWS Cost Explorer
  2. BAWS Trusted Advisor
  3. CAWS Budgets
  4. DAWS Savings Plans
Show answer & explanation

Correct answer: D. AWS Savings Plans

AWS Savings Plans offer a flexible pricing model that provides significant discounts on compute usage in exchange for a commitment to a consistent amount of usage (measured in $/hour) for a 1-year or 3-year term. This helps make costs predictable and lower.

Why the other options are wrong

  • A. AWS Cost Explorer is a tool for visualizing and managing costs after they occur, not for setting predictable pricing upfront.
  • B. AWS Trusted Advisor provides recommendations for cost optimization, security, and performance, but it's not a billing feature for predictable pricing.
  • C. AWS Budgets allows setting custom budgets and alerts for cost management, but it doesn't offer discounted pricing or make costs predictable itself.

AWS Savings Plans

A flexible pricing model that offers lower prices compared to On-Demand, in exchange for a commitment to a consistent amount of compute usage (measured in $/hour) for a 1-year or 3-year term.

  • Commit to consistent usage for discounts.
  • Applicable to EC2, Fargate, and Lambda.
  • Reduces costs and provides predictability.

Memory trick: Save predictably with plans, not just explore or budget.

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