A company is planning to use the AWS Redshift service. The Redshift service and data on it would be used continuously for the next 3 years as per the current business plan. What would be the most cost-effective solution in this scenario?

Answer options:

A.Consider using On-demand instances for the Redshift Cluster.
B.Enable Automated backup.
C.Consider using Reserved Instances for the Redshift Cluster.
D.Consider not using a cluster for the Redshift nodes.

Correct Answer - C
AWS documentation mentions the following:
If you intend to keep your Amazon Redshift cluster running continuously for a prolonged period, you should consider purchasing reserved node offerings. These offerings provide significant savings over on-demand pricing, but they require you to reserve compute nodes and commit to paying for those nodes for either a one-year or three-year duration.
For more information on Reserved Nodes in Redshift, please visit the following URL:
https://docs.aws.amazon.com/redshift/latest/mgmt/purchase-reserved-node-instance.html