A Company Is Running an Ecommerce Application on Amazon EC2

question 14

Multiple Choice

A company is running an ecommerce application on Amazon EC2. The application consists of a stateless web tier that requires a minimum of 10 instances, and a peak of 250 instances to support the application's usage. The application requires 50 instances 80% of the time. Which solution should be used to minimize costs?

• A) Purchase Reserved Instances to cover 250 instances.
• B) Purchase Reserved Instances to cover 80 instances. Use Spot Instances to cover the remaining instances.
• C) Purchase On-Demand Instances to cover 40 instances. Use Spot Instances to cover the remaining instances.
• D) Purchase Reserved Instances to cover 50 instances. Use On-Demand and Spot Instances to cover the remaining instances.

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Definitions:

Debt-To-Equity Ratio

The ratio highlights the balance of debt and equity used in the financial structuring of a company's assets.

Total Liabilities

The aggregate of all debts and financial obligations a company owes to outside parties, reflected on the balance sheet.

Total Equity

The total value of an entity's assets after subtracting its liabilities, representing the owners' residual interest in the company.

Straight-Line Method

A method of calculating depreciation or amortization by evenly spreading the cost of an asset over its useful life.