Question 15

Explanation

Correct option:

Partial upfront payment option with standard 3-years term

You can use Amazon EC2 Reserved Instances (RI) to reserve capacity and receive a discount on your instance usage compared to running On-Demand instances. The discounted usage price is reserved for the duration of your contract, allowing you to predict compute costs over the term of the Reserved Instance (RI).

Please review this pricing comparison for EC2 Reserved Instances (RI):

via - https://d0.awsstatic.com/whitepapers/aws_pricing_overview.pdf

So the percentage savings for each option is as follows:

"No upfront payment option with the standard 1-year term" - 36%

"All upfront payment option with the standard 1-year term" - 40%

"No upfront payment option with the standard 3-years term" - 56%

"Partial upfront payment option with the standard 3-years term" - 59%

Exam Alert:

For the exam, there is no need to memorize these savings numbers. All you need to remember is that a 3 years term would always be more cost-effective than a 1-year term. Then within a term, "all upfront" is better than "partial upfront" which in turn is better than "no upfront" from a cost savings perspective.

Incorrect options:

All upfront payment option with the standard 1-year term

No upfront payment option with standard 1-year term

No upfront payment option with standard 3-years term

These three options contradict the details provided earlier in the explanation, so these options are incorrect.

Reference:

https://d0.awsstatic.com/whitepapers/aws_pricing_overview.pdf