Final answer:
To reduce costs, the company should consider using Amazon EC2 Spot Instances for interruptible processes, Reserved Instances for committed baseline usage, and Savings Plans for consistent usage over a longer term.
Step-by-step explanation:
To reduce the cost of the batch processing job, the company should consider the Amazon EC2 Spot Instances if the job can be interrupted and resumed. Spot Instances allow you to take advantage of unused EC2 capacity at a significant discount compared to On-Demand prices. If the job needs to run uninterrupted for 5 hours each day, a combination of Reserved Instances for the baseline capacity and On-Demand or Spot Instances for the additional capacity during the five days would be cost-effective. The company can also explore Savings Plans, which offer lower prices in exchange for a commitment to a consistent amount of usage over a one or three-year period.
A major reason for firms like Amazon's success is their ability to optimize costs, which could be mirrored by this company through careful selection of the right EC2 pricing model.
- On-Demand Instances: Pay for the capacity you use with no long-term commitments or upfront payments.
- Reserved Instances: Make a low, one-time, upfront payment and in return receive a significant discount on the hourly charge for that instance.
- Spot Instances: Bid for unused Amazon EC2 capacity at discounts.
- Savings Plans: Commit to a consistent amount of usage in exchange for a discounted rate.