Question

Difficulty: HardReserved Instances and Savings Plans Optimization

A company manages a multi-account environment using AWS Organizations with consolidated billing enabled. The environment consists of the following workloads:

* Account A: Runs a steady-state web application on Amazon EC2 c5.xlargec5.xlarge instances in the useast1us-east-1 region.
* Account B: Runs microservices on AWS Fargate and AWS Lambda.
* Account C: Runs dynamic development environments on Amazon EC2 m5.largem5.large instances in the uswest2us-west-2 region.

The SysOps administrator must implement a cost optimization strategy that provides the highest flexibility, covers all of these compute resources, and allows any unused discount capacity from one account to automatically apply to other accounts' eligible workloads.

Which purchasing strategy meets these requirements most cost-effectively?

  1. A
    Purchase regional Convertible Reserved Instances for both c5.xlargec5.xlarge in useast1us-east-1 and m5.largem5.large in uswest2us-west-2 in the management account.
  2. Purchase a Compute Savings Plan in the management account, ensuring that billing discount sharing is enabled for all member accounts.Answer
  3. C
    Purchase an EC2 Instance Savings Plan for the c5c5 and m5m5 instance families in the management account.
  4. D
    Purchase a Compute Savings Plan in Account B and disable Billing discount sharing in the AWS Organizations console.

Answer

Purchase a Compute Savings Plan in the management account, ensuring that billing discount sharing is enabled for all member accounts.
Purchasing a Compute Savings Plan in the management account with billing discount sharing enabled is the most cost-effective and flexible solution. Compute Savings Plans automatically apply to EC2 instances regardless of instance family, size, OS, or region, and also cover AWS Fargate and AWS Lambda across all consolidated accounts in the AWS Organization.

Step-by-Step Solution

1
Analyze the workloads and compute types across the accounts.
Workloads include EC2 instances of different families (c5c5, m5m5) across multiple regions (useast1us-east-1, uswest2us-west-2), Fargate container tasks, and Lambda functions.
Identifying all compute services and regions helps determine which commitment models are eligible to cover the entire fleet.
2
Compare the discount scope of Reserved Instances (RIs) vs. Savings Plans.
RIs only cover EC2/RDS and do not cover Fargate or Lambda. EC2 Instance Savings Plans are restricted to a single instance family in a single region. Compute Savings Plans cover EC2, Fargate, and Lambda globally across all regions.
Determining the correct discount type ensures maximum coverage and flexibility for a heterogeneous environment.
3
Evaluate the AWS Organizations sharing requirements.
By default, Savings Plans purchased in the management account or any member account apply to the consolidated billing family. Disabling sharing blocks this behavior.
Ensuring discount sharing is enabled allows unused commitments in one account to automatically apply to eligible workloads in other accounts.

Key Concept

Compute Savings Plans vs. EC2 Instance Savings Plans and RI coverage scope within AWS Organizations
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