A company has Amazon EC2 instances that run nightly batch jobs to process data.

This option is the most cost-effective solution because it leverages the Spot Instances, which are unused EC2 instances that are available at up to 90% discount compared to On-Demand prices.Spot Instances can be interrupted by AWS when the demand for On-Demand instances increases, but since the batch jobs are fault-tolerant and can be reprocessed by another instance, this is not a major issue. By using a launch template, the company can specify the configuration of the Spot Instances, such as the instance type, the operating system, and the user data. By using an Auto Scaling group, the company can automatically scale the number of Spot Instances based on the CPU usage, which reflects the load of the batch jobs. This way, the company can optimize the performance and the cost of the EC2 instances for the nightly batch jobs.

A. Purchase a 1-year Savings Plan for Amazon EC2 that covers the instance family of the Auto Scaling group that the batch job uses. This option is not optimal because it requires a commitment to a consistent amount of compute usage per hour for a one-year term, regardless of the instance type, size, region, or operating system. This can limit the flexibility and scalability of the Auto Scaling group and result in overpaying for unused compute capacity. Moreover, Savings Plans do not provide a capacity reservation, which means the company still needs to reserve capacity with On-Demand Capacity Reservations and pay lower prices with Savings Plans.

B. Purchase a 1-year Reserved Instance for the specific instance type and operating system of the instances in the Auto Scaling group that the batch job uses. This option is not ideal because it requires a commitment to a specific instance configuration for a one-year term, which can reduce the flexibility and scalability of the Auto Scaling group and result in overpaying for unused compute capacity. Moreover, Reserved Instances do not provide a capacity reservation, which means the company still needs to reserve capacity with On-Demand Capacity Reservations and pay lower prices with Reserved Instances.

D. Create a new launch template for the Auto Scaling group Increase the instance size Set a policy to scale out based on CPU usage. This option is not cost-effective because it does not take advantage of the lower prices of Spot Instances. Increasing the instance size can improve the performance of the batch jobs, but it can also increase the cost of the On-Demand instances. Moreover, scaling out based on CPU usage can result in launching more instances than needed, which can also increase the cost of the system.