A company needs to guarantee that EC2 capacity is available in a specific Availability Zone for a 1- or 3-year term. Which AWS purchasing option should the company choose to reserve this capacity and receive a significant discount compared to On-Demand pricing?
Dedicated Hosts
Spot Instances
Savings Plans
Reserved Instances
Reserved Instances (RIs) allow customers to reserve compute capacity for a specific instance type in a specific Availability Zone for a 1- or 3-year term, which provides a capacity reservation and a significant discount. Payment options are flexible and can be all upfront, partial upfront, or no upfront. Spot Instances are incorrect because they use spare, unreserved capacity and can be interrupted, offering no capacity guarantee. Savings Plans are incorrect because, while they offer a discount for a term commitment, they do not provide a capacity reservation. Dedicated Hosts provide a physical server for a customer's exclusive use but are a different purchasing model primarily for addressing compliance or licensing requirements.
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