AWS (Amazon Web Services) Certification Practice Exam

Which option for instance purchasing has the smallest discount?

1. All Upfront

2. No Upfront

3. Partial Upfront

4. Scheduled Instances

The correct answer is: No Upfront

The option associated with the smallest discount in instance purchasing is the No Upfront option. This purchasing model allows users to pay for their instances on a pay-as-you-go basis, meaning there are no upfront costs involved. While this provides flexibility, it results in the least substantial savings compared to the other payment models. In contrast, the All Upfront option requires a one-time payment for the entire term of the instance, which typically offers the largest discount because it provides AWS with assurance of your commitment for the duration. The Partial Upfront option, though it involves some upfront payment, still offers significant discounts relative to No Upfront, as it combines an initial commitment with ongoing usage charges at a reduced rate. Scheduled Instances represent another opportunity for saving, as they allow users to reserve capacity in a more predictable summary, often at a also competitive rate based on the commitment. Since the No Upfront option caters to users seeking maximum flexibility and minimal initial investment, it does not incentivize long-term commitment, and therefore does not provide significant discounts compared to the alternatives.