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Difficulty: EasyCost-Optimized Compute Selection and Purchasing Strategies

A company runs a production web application where the compute tier is hosted on Amazon EC2 instances and the database tier is hosted on Amazon RDS. Both tiers run continuously 24/7. To reduce costs, the company decides to purchase a 1-year Compute Savings Plan.

Which of the following describes how this Compute Savings Plan will apply discounts to these resources?

  1. The Compute Savings Plan will apply discounts to the Amazon EC2 instances, but it will not apply any discounts to the Amazon RDS database.Answer
  2. B
    The Compute Savings Plan will apply discounts to both the Amazon EC2 instances and the Amazon RDS database.
  3. C
    The Compute Savings Plan will apply discounts to the Amazon RDS database, but the Amazon EC2 instances must use EC2 Instance Savings Plans to receive discounts.
  4. D
    The Compute Savings Plan will apply discounts to the Amazon RDS database only if the database is configured in a Multi-AZ deployment.

Answer

The Compute Savings Plan will apply discounts to the Amazon EC2 instances, but it will not apply any discounts to the Amazon RDS database.
Compute Savings Plans provide the most flexibility and apply automatically to EC2 instance usage, AWS Fargate, and AWS Lambda. They do not, however, apply to non-compute services such as Amazon RDS databases. Therefore, the EC2 instances will receive the discount, while the RDS database will not.

Step-by-Step Solution

1
Identify the resource types involved in the workload.
The workload consists of Amazon EC2 instances (compute tier) and Amazon RDS (database tier).
Understanding the specific AWS services being used is necessary to determine which savings or purchasing models can be applied.
2
Analyze the coverage scope of Compute Savings Plans.
Compute Savings Plans apply discounts to Amazon EC2, AWS Fargate, and AWS Lambda usage.
Compute Savings Plans are designed specifically for compute services and do not extend to database services like Amazon RDS.
3
Match the plan's scope with the company's resources to determine the application of discounts.
Discounts will apply to the EC2 compute instances, while the RDS database will continue to be billed at standard rates unless RDS Reserved Instances are purchased.
This allows for a cost-effective purchasing strategy for the compute tier while identifying that database costs must be optimized using database-specific models.

Key Concept

Compute Savings Plans apply strictly to AWS compute services (EC2, Fargate, and Lambda) and do not cover database services like Amazon RDS.
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Cost-Optimized Compute Selection and Purchasing Strategies