A company needs to optimize the cost of its Amazon EC2 Instances.

Understanding the Requirements: The company needs to optimize costs and has the flexibility to change EC2 instance types and families frequently (every 2-3 months).

Savings Plans Overview: Savings Plans offer significant savings over On-Demand pricing, with the flexibility to use any instance type and family within a region.

No Upfront Compute Savings Plan: This plan allows for cost optimization without any upfront payment, offering flexibility to change instance types and families.

Term Selection: A 1-year term is appropriate for balancing cost savings and flexibility given the frequent changes in instance types.

Conclusion: A No Upfront Compute Savings Plan for a 1-year term provides the needed flexibility and cost savings without the commitment and inflexibility of Reserved Instances.

References

AWS Savings Plans:AWS Savings Plans

AWS Cost Management Documentation:AWS Cost Management