A company runs a steady-state web application on EC2 with predictable, consistent compute usage 24/7 for the next three years. Which purchasing option provides the best balance of cost savings and flexibility?
A) On-Demand Instances, to avoid any long-term commitment.
B) Spot Instances, for the deepest possible discount.
C) A Compute Savings Plan with a 3-year term.
D) A 3-year Standard Reserved Instance for a specific instance family in a specific AZ.
Correct Answer: C
Explanation: Compute Savings Plans offer significant discounts (similar to Reserved Instances) in exchange for a committed amount of compute usage ($/hour), but apply automatically across instance families, sizes, OS, and regions — giving far more flexibility than Standard RIs while still capturing long-term savings.
Why the others are wrong: (A) leaves significant savings on the table for a known, steady workload. (B) Spot Instances can be interrupted with two minutes’ notice and are unsuitable for an always-on production app. (D) Standard RIs lock in a specific configuration and AZ, less flexible than a Savings Plan, and risk waste if requirements change.