A company has a workload on Amazon EC2 that exhibits variable usage patterns due to occasional marketing campaigns which lead to unpredictable bursts of traffic. Their current setup uses a fixed number of instances which often results in either over-provisioning or inability to serve peak traffic. What strategy should the Solutions Architect adopt to optimize for cost without sacrificing performance?
Use a fixed number of On-demand Instances to simplify management.
Implement EC2 Auto Scaling with dynamic scaling policies to automatically adjust the number of instances in response to traffic demands.
Predominantly utilize Reserved Instances to ensure capacity and reduce costs.
Increase the use of Spot Instances to benefit from cost savings during off-peak times.