A company anticipates a consistent load for a new web application, with occasional spikes during seasonal events. They require a balance between cost savings and flexibility for their EC2 instances. Which purchasing option aligns with their needs while optimizing for cost?
Rely solely on Spot Instances for the cheapest possible option, dealing with interruptions during spikes by using automatic scaling.
Commit fully to Reserved Instances to gain maximum long-term discounts and manage spikes within the reserved capacity.
Employ a Savings Plan to cover both consistent load and spikes, understanding that it may be difficult to perfectly match usage to the commitment.
Opt for a combination of Reserved Instances for baseline capacity and On-Demand Instances for handling load spikes to ensure cost-effectiveness and flexibility.
A combination of Reserved Instances and On-Demand Instances can provide the baseline capacity at a discounted rate, while maintaining the flexibility to handle occasional spikes with On-Demand pricing. While Reserved Instances offer significant discounts for a commitment of 1 or 3 years, they are less flexible for handling unpredictable spikes without incurring additional costs. Spot Instances provide the highest discounts but are not suitable for applications requiring uninterrupted service. Savings Plans offer cost savings and some flexibility but would lock the company into a specific usage amount, potentially leading to over-provisioning during non-peak periods or insufficient capacity during spikes. A combination of Reserved Instances for the baseline and On-Demand for the spikes is often the optimal approach for scenarios with predictable baseline usage and occasional peaks.
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