1. The document discusses replacing reserved EC2 instances with Spot Instances to reduce costs and maximize unused AWS capacity. It outlines several challenges of using Spot Instances like instance termination and deregistration from load balancers. 2. The solutions proposed include using Lambda functions to deregister terminated instances from load balancers, pre-empting the Spot market by triggering autoscaling when Spot capacity is low, and automating the process through CloudFormation templates and stacks. 3. An automated deployment process is outlined using CloudFormation templates, Lambda functions to generate Spot Fleet configurations, and CloudWatch alarms and events to manage capacity and respond to market changes.