Question

How are Reserved Instances different from On-Demand DB Instances?

A) Reserved Instances are billed by the hour, while On-Demand DB Instances are billed based on actual usage.

B) Reserved Instances require upfront payments for a specific duration, providing cost savings, while On-Demand DB Instances are more flexible but may be more expensive.

C) Reserved Instances are suitable for short-term, unpredictable workloads, while On-Demand DB Instances are better for stable, long-term requirements.

D) Reserved Instances and On-Demand DB Instances are essentially the same, with no significant differences in billing or usage.

E) Reserved Instances provide greater flexibility in terms of scaling, while On-Demand DB Instances offer fixed capacity

Answer 1

Reserved Instances require upfront payment with a long-term commitment, offering cost savings, whereas On-Demand DB Instances are paid based on actual usage, offering flexibility but potentially higher costs in the long run. so, option B is the correct answer.

Step-by-step explanation:

Reserved Instances and On-Demand DB Instances are two different methods of paying for database capacity on cloud platforms. The primary difference between them is in their payment model and commitment term.

B) Reserved Instances require upfront payments for a specific duration, typically 1 or 3 years. The user commits to using a specific DB instance type over this term, which provides significant cost savings compared to On-Demand Instances, due to the longer-term commitment.

On the other hand, On-Demand DB Instances offer more flexibility because they are billed based on the actual usage with no long-term commitment. While this increases flexibility, it may be more expensive in the long run if the instances are used consistently over time. They are typically chosen for workloads with unpredictable or variable usage that does not justify a long-term commitment.