AWS Pricing Models

Start-Up Building a Prototype

Background: The company is developing a new AI-driven chatbot and isn't sure how many users they'll have initially.

• On-Demand

• Reserved Instances

• Savings Plans

Answer explanation

Start-ups building prototypes often face unpredictable usage. They can benefit from the flexibility of On-Demand pricing, which requires no long-term commitment.

E-commerce Platform During Holiday Season

Background: The company expects a large increase in traffic during Black Friday and Christmas sales.

• On-Demand

• Reserved Instances

• Savings Plan

Answer explanation

During high-traffic periods like the holiday season, the need for computing resources can surge unpredictably. On-Demand instances can handle these surges effectively.

Financial Company Running High-Performance Computing Jobs

Background: The company runs risk modeling calculations every night that require a lot of computing power.

• On-Demand

• Reserved Instances

• Savings Plans

Answer explanation

Reserved Instances would be a more cost-effective solution for high-performance computing jobs that run regularly over a longer period, like financial simulations or risk modeling.

Media Company Serving Streaming Video Content

Background: The company streams millions of hours of video content every day, consistently throughout the year.

• On-Demand

• Reserved Instances

• Savings Plans

Answer explanation

Media companies have predictable and heavy demand for server resources. Reserved Instances would provide the necessary resources at a significant discount.

Small Business Running a Simple Website

Background: The company has a website that provides information about its services, but traffic is unpredictable and often low.

• On-Demand

• Reserved Instances

• Savings Plans

Answer explanation

A small business with a simple website and unpredictable traffic might not benefit from long-term commitments. The flexibility of On-Demand pricing suits them best.

Large Enterprise with Steady Workload

Background: The company runs multiple applications, data processing, and analytics tasks consistently throughout the year.

• On-Demand

• Reserved Instances

• Savings Plans

Answer explanation

For large enterprises with predictable, steady workloads, Savings Plans provide substantial cost savings across multiple services, allowing flexibility and consistent expenditure.

Tech Startup with Scalable Web Application

Background: The company is developing a new social media app that could quickly gain users and require a range of different AWS services.

• On-Demand

• Reserved Instances

• Savings Plans

Answer explanation

A tech startup that anticipates growing and varied usage across different services can maximize cost savings with the flexible coverage of Savings Plans.

University Conducting Scientific Research

Background: The university runs genome-sequencing tasks for ongoing research projects, requiring continuous computing power.

• On-Demand

• Reserved Instances

• Savings Plans

Answer explanation

Research workloads are often predictable and continue for extended periods. Reserved Instances would offer substantial cost savings over On-Demand pricing.

Online Gaming Company

Background: The company releases new game updates every few months, causing big spikes in players and server demand.

• On-Demand

• Reserved Instances

• Savings Plans

Answer explanation

Gaming workloads can be unpredictable, spiking during new releases or events. On-Demand pricing allows the company to scale up or down based on demand.

SaaS Company Offering CRM Services

Background: The company provides CRM services to multiple clients and has a predictable, steady workload across different services.

• On-Demand

• Reserved Instances

• Savings Plans

Answer explanation

A SaaS company providing CRM services would have a steady, predictable workload that spans across several services. Savings Plans provide a significant discount for this usage pattern.