Amazon EC2 Reserved Instances Term for Maximum Savings
Short answer
C The 3-year Reserved Instance term provides the maximum cost savings among available AWS EC2 RI options.
Question
Key Takeaways
The exam tests the specific duration limits of Reserved Instances; the trap is assuming longer terms like 5 years exist when only 1 and 3-year terms are supported.
This question tests knowledge of AWS pricing models, specifically the term lengths available for EC2 Reserved Instances. The correct answer is C because a 3-year commitment offers the highest discount among available options.
Common mistake: Users often select D (5 years) assuming that longer commitments always yield greater savings, not realizing AWS does not offer 5-year RI terms.
Expert Analysis
Why the Answer Is Correct
Amazon EC2 Reserved Instances provide significant cost savings compared to On-Demand pricing in exchange for a commitment to use specific capacity. AWS currently supports two term lengths: 1 year and 3 years. Among these, the 3-year term provides the deepest discount, offering the most cost savings.
Why the Other Options Are Wrong
Option A (1 year) provides savings but less than the 3-year option. Options B and D (2 years and 5 years) are incorrect because AWS does not offer Reserved Instance terms of 2 or 5 years. The available terms are strictly limited to 1 and 3 years.
Community Comment Notes
Community members correctly identified that 5-year terms do not exist, with one user noting 'There have no 5 yers plan'. Another commenter clarified that while 3 years is the longest available, it is not because 5 years was removed, but simply never offered as an option for standard RIs.
Official Reference
https://aws.amazon.com/ec2/pricing/reserved-instances/
This link opens the official vendor documentation in a new tab.
Exam Strategy
Memorize the specific service constraints and limitations for AWS offerings. For pricing questions, always verify if the 'longer is better' assumption applies to the actual product features, as some services have hard caps on term lengths or quantities.
Frequently Asked Questions
Does AWS offer 5-year Reserved Instances?
Why is 3 years better than 1 year?
Community Votes
100% of anonymous learners picked answer C. Votes are pick records left by other test-takers — they are not the verified answer.
Discussion 5 contributions
Compiled from public community threads and reader submissions, lightly edited for clarity. Handles and vote tallies are shown as recorded, and comments reflect the views of individual contributors.
From public community threads 5
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Yomijohnson 👍 2Amazon EC2 Reserved Instances offer cost savings in exchange for a commitment to use EC2 capacity over a set term, with the 3-year term providing the highest savings compared to the 1-year option. AWS does not offer a 5-year term for Reserved Instances, so 3 years is the longest available and the most cost-effective option. Summary: A 3-year Reserved Instance term provides the greatest cost savings, making option C the correct answer.
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tsangckl 👍 1There have no 5 yers plan https://aws.amazon.com/ec2/pricing/reserved-instances/pricing/
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Meow7 👍 1c is correct. Please help with discussion on 565. Thanks.
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Zerro 👍 1Shouldn't it be D, 5 years?
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ShaiTay 👍 1 Answered CC. 3 years
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