A company’s application is running on Amazon EC2 instances. The company is planning a partial migration to a serverless architecture in the next year and wants to pay for resources up front.
Which AWS purchasing option will optimize the company's costs?
To optimize costs for a company planning a partial migration to a serverless architecture, the best purchasing option is the Compute Savings Plan. This plan offers flexibility across various compute services, including EC2, Fargate, and Lambda, making it suitable for companies transitioning to a serverless environment. It ensures consistent pricing regardless of instance family, size, region, or operating system, and provides significant cost reductions for committed usage over a one- or three-year term. This flexibility is crucial as it allows the company to manage costs effectively during the migration period.
Compute Savings plan is correct answer because it lets you switch between EC2 and serverless services like Fargate and Lambda.
For the company's scenario, where they currently have applications running on Amazon EC2 instances but plan to partially migrate to a serverless architecture in the future, the optimal AWS purchasing option to optimize costs is EC2 Instance Savings Plans. EC2 Instance Savings Plans allow the company to pay upfront for specific instance types and regions for either a one- or three-year term. By committing to these savings plans, the company can benefit from discounted hourly rates for their EC2 instances, resulting in cost savings compared to On-Demand pricing.
Compute Savings Plans provide the most flexibility and help to reduce your costs by up to 66%. These plans automatically apply to EC2 instance usage regardless of instance family, size, AZ, Region, OS or tenancy, and also apply to Fargate or Lambda usage. For example, with Compute Savings Plans, you can change from C4 to M5 instances, shift a workload from EU (Ireland) to EU (London), or move a workload from EC2 to Fargate or Lambda at any time and automatically continue to pay the Savings Plans price. https://aws.amazon.com/savingsplans/compute-pricing/
Compute Savings Plans for Amazon EC2 - No UpFront
pls ignore above.... EC2 Instance Savings Plans align with the company's requirements: Partial Migration to a Serverless Architecture: EC2 Instance Savings Plans are flexible and can provide cost savings for existing EC2 instances while also accommodating future instances. Even if the company is planning a partial migration to a serverless architecture, they can still benefit from EC2 Instance Savings Plans for the EC2 instances they are using during the transitional phase. Pay for Resources Up Front: EC2 Instance Savings Plans are a payment option that requires an upfront commitment. By paying for a specific amount of compute usage upfront, the company can avail of the cost savings over the chosen term, which can be one or three years.
Compute Savings Plans provide the most flexibility and prices that are up to 66 percent off of On-Demand rates. These plans automatically apply to your EC2 instance usage, regardless of instance family (for example, m5, c5, etc.), instance sizes (for example, c5.large, c5.xlarge, etc.), Region (for example, us-east-1, us-east-2, etc.), operating system (for example, Windows, Linux, etc.), or tenancy (for example, Dedicated, default, Dedicated Host) https://docs.aws.amazon.com/savingsplans/latest/userguide/what-is-savings-plans.html#plan-types
Compute Savings Plans are designed to provide cost savings for Amazon EC2 instances, regardless of the instance family, size, region, or operating system. They offer flexibility and coverage for a one- or three-year commitment, allowing you to reserve compute capacity in exchange for a lower hourly rate.
The AWS purchasing option that will optimize the company’s costs is EC2 Instance Savings Plans. EC2 Instance Savings Plans provide the most flexibility and help reduce costs by up to 72% compared to On-Demand pricing1. Savings Plans are a flexible pricing model that offer low prices on EC2 instances usage in exchange for a commitment to a consistent amount of usage (measured in dollars per hour) for a term of 1 or 3 years1.
Compute Savings Plans, you can move a workload from EC2 to Fargate or Lambda at any time and automatically continue to pay the Savings Plans price.