Which Amazon EC2 pricing option allows customers to bid for unused EC2 capacity with potential savings of up to 90%, while accepting that instances may be interrupted?
Spot Instances use AWS spare capacity at up to 90% discount, with the trade-off that AWS can interrupt with 2 minutes notice when capacity is needed.
Why this answer
Spot Instances allow customers to bid for unused EC2 capacity, offering potential savings of up to 90% compared to On-Demand pricing. However, these instances can be interrupted (terminated or hibernated) by AWS when the Spot price exceeds the customer's bid or when capacity is needed for On-Demand or Reserved Instance customers, making them ideal for fault-tolerant and flexible workloads.
Exam trap
The trap here is that candidates may confuse Spot Instances with Reserved Instances, thinking both offer similar discounts, but Reserved Instances require a commitment and are not interruptible, while Spot Instances are interruptible and involve bidding on unused capacity.
How to eliminate wrong answers
Option A is wrong because On-Demand Instances provide full pricing flexibility with no interruption risk, but they do not allow bidding on unused capacity or offer up to 90% savings. Option B is wrong because Reserved Instances provide a significant discount (up to 72%) in exchange for a 1- or 3-year commitment, but they are not interruptible and do not involve bidding on unused capacity. Option D is wrong because Dedicated Instances run on single-tenant hardware and are not associated with bidding on unused capacity or interruption; they are used for compliance or licensing requirements, not for cost savings via spot pricing.