A startup has reserved On-Demand Capacity Reservations for the Amazon EC2 instances they use for running analytics. Once the billing report was generated, the company was surprised to see that the costs were much higher than expected. The startup has hired you as a SysOps Administrator to bridge this knowledge gap.

Can you identify the important points to remember when considering On-Demand Capacity Reservations?

Ref:

Ans:

On-Demand Capacity Reservations enable you to reserve capacity for your Amazon EC2 instances in a specific Availability Zone for any duration - On-Demand Capacity Reservations enable you to reserve capacity for your Amazon EC2 instances in a specific Availability Zone for any duration. This gives you the ability to create and manage Capacity Reservations independently from the billing discounts offered by Savings Plans or regional Reserved Instances.

Capacity Reservations do not offer any billing discounts - Capacity Reservations do not offer any billing discounts. You can combine Capacity Reservations with Savings Plans or Regional Reserved Instances to receive a discount.