The company should purchase the same Reserved Instances for an additional 3-year term with All Upfront payment. The company should purchase a 3-year Compute Savings Plan with All Upfront payment in the management account to cover any additional compute costs. This solution will provide the company with the most cost savings because Reserved Instances and Savings Plans are both pricing models that offer significant discounts compared to On-Demand pricing. Reserved Instances are commitments to use a specific instance type and size in a single Region for a one- or three-year term. You can choose between three payment options: No Upfront, Partial Upfront, or All Upfront. The more you pay upfront, the greater the discount1. Savings Plans are flexible pricing models that offer low prices on EC2 instances, Fargate, and Lambda usage, in exchange for a commitment to a consistent amount of usage (measured in $/hour) for a one- or three-year term. You can choose between two types of Savings Plans: Compute Savings Plans and EC2 Instance Savings Plans. Compute Savings Plans apply to any EC2 instance regardless of Region, instance family, operating system, or tenancy, including those that are part of EMR, ECS, or EKS clusters, or launched by Fargate or Lambda. EC2 Instance Savings Plans apply to a specific instance family within a Region and provide the most savings2. By purchasing the same Reserved Instances for an additional 3-year term with All Upfront payment, the company can lock in the lowest possible price for its EC2 instances that run continuously for 3 years. By purchasing a 3-year Compute Savings Plan with All Upfront payment in the management account, the company can benefit from additional discounts on any other compute usage across its member accounts.
The other options are not correct because:
Purchasing a 1-year Compute Savings Plan with No Upfront payment in each member account would not provide as much cost savings as purchasing a 3-year Compute Savings Plan with All Upfront payment in the management account. A 1-year term offers lower discounts than a 3-year term, and a No Upfront payment option offers lower discounts than an All Upfront payment option. Also, purchasing a Savings Plan in each member account would not allow the company to share the benefits of unused Savings Plan discounts across its organization.
Purchasing a 3-year EC2 Instance Savings Plan with No Upfront payment in the management account to cover EC2 costs in each AWS Region would not provide as much cost savings as purchasing Reserved Instances for an additional 3-year term with All Upfront payment. An EC2 Instance Savings Plan offers lower discounts than Reserved Instances for the same instance family and Region. Also, a No Upfront payment option offers lower discounts than an All Upfront payment option.
Purchasing a 3-year EC2 Instance Savings Plan with All Upfront payment in each member account would not provide as much flexibility or cost savings as purchasing a 3-year Compute Savings Plan with All Upfront payment in the management account. An EC2 Instance Savings Plan applies only to a specific instance family within a Region and does not cover Fargate or Lambda usage. Also, purchasing aSavings Plan in each member account would not allow the company to share the benefits of unused Savings Plan discounts across its organization.
[References:, https://aws.amazon.com/ec2/pricing/reserved-instances/, https://aws.amazon.com/savingsplans/, , , , ]
