AWS Certified Cloud Practitioner — Question 965

A company has a workload that will run continuously for 1 year. The workload cannot tolerate service interruptions.
Which Amazon EC2 purchasing option will be MOST cost-effective?

Answer options

• A. All Upfront Reserved Instances
• B. Partial Upfront Reserved Instances
• C. Dedicated Instances
• D. On-Demand Instances

Correct answer: A

Explanation

All Upfront Reserved Instances offer the highest discount rate among the payment options for a committed 1-year term, making them the most cost-effective choice for continuous workloads. On-Demand Instances are much more expensive for long-term, steady-state usage, and Dedicated Instances introduce unnecessary extra costs for physical server isolation. Partial Upfront Reserved Instances provide a lower discount compared to paying the entire commitment amount all upfront.