Which AWS resource can help a company reduce its costs in exchange for a usage commitment when using Amazon EC2 instances?

Question

Options

• ACompute Savings Plans
• BAuto Scaling group
• COn-Demand Instance
• DEC2 instance store

• A
  88% (42)
• B
  6% (3)
• C
  2% (1)
• D
  4% (2)

Explanation

Compute Savings Plans offer significant discounts (up to 66%) on EC2 usage in exchange for a commitment to a consistent amount of compute usage (measured in $/hour) over a 1- or 3-year term, directly reducing costs through a usage commitment.

Why the distractors are wrong:

• B. Auto Scaling group dynamically adjusts capacity to meet demand, which can optimize costs, but it does not involve a usage commitment or provide discounted pricing.
• C. On-Demand Instances are the standard pricing model with no commitment required, making them the most flexible but also the most expensive option.
• D. EC2 Instance Store is a type of temporary block storage physically attached to the host, not a pricing or cost-reduction mechanism.

Memory Tip: Think of Savings Plans like a gym membership - you commit to paying a set amount monthly, and in return, you get a better rate than paying per visit (On-Demand). The key phrase in any exam question is "usage commitment" or "reduced cost in exchange for commitment" - that always points to Savings Plans or Reserved Instances.

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