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What does EC2 Reserved Instances payment provide?

A) Pay-as-you-go pricing without upfront fees
B) Prepaid capacity with reduced hourly rates
C) Discounted rates in exchange for utilization commitments
D) Reserved capacity with hourly billing

User Asif Bilal
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1 Answer

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Final answer:

EC2 Reserved Instances provide discounted rates for committing to specific instance usage over a set period, usually one or three years, offering notable cost savings compared to on-demand service pricing.

Step-by-step explanation:

You asked about what EC2 Reserved Instances payment provides. EC2 Reserved Instances offer discounted rates in exchange for a commitment to utilize a specific instance type in a defined region for a one-year or three-year period. By choosing Reserved Instances, users can significantly lower their compute costs compared to on-demand pricing.

The payment option represents a financial commitment for EC2 capacity with a sizeable discount as a trade-off for that long-term commitment.

User Hkk
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