Which pricing model enables the company to optimize costs and meet these requirements?
Reserved Instances
Spot Instances
On-Demand Instances
Dedicated Instances
Explanations:
Reserved Instances provide cost savings for applications with steady-state usage but are not ideal for stateless simulations that may vary in demand and can be run at any time. They require a commitment for a term (1 or 3 years) which may not align with the fault-tolerant and variable nature of the simulations.
Spot Instances allow users to bid on unused EC2 capacity, providing significant cost savings compared to On-Demand pricing. Since the simulations are stateless and fault-tolerant, the company can take advantage of Spot Instances without worrying about interruptions, optimizing costs effectively.
On-Demand Instances offer flexibility without long-term commitments, but they are the most expensive option for running a large number of simultaneous simulations. This pricing model does not optimize costs as well as Spot Instances for the described use case.
Dedicated Instances are used for compliance and control, providing physical isolation on hardware dedicated to a single customer. This model incurs higher costs and is unnecessary for the stateless and fault-tolerant simulations, making it an inefficient choice for cost optimization.