- A
Public cloud
Why wrong: Incorrect. A public cloud deployment would run all resources on AWS, not on-premises. This scenario uses AWS for compute but retains data on-premises, so it is not purely public cloud.
- B
Private cloud
Why wrong: Incorrect. A private cloud is a cloud environment dedicated to a single organization, typically hosted on-premises or in a colocation facility. This scenario uses AWS, a public cloud provider, making it hybrid, not purely private.
- C
Hybrid cloud
Correct. Hybrid cloud is the integration of on-premises infrastructure (private cloud) with public cloud services. The company keeps sensitive data on-premises and extends compute capabilities to AWS, connected via a dedicated encrypted link, which is a classic hybrid cloud architecture.
- D
Multi-cloud
Why wrong: Incorrect. Multi-cloud refers to using multiple public cloud providers (e.g., AWS, Azure, GCP). This scenario involves only one public provider (AWS) combined with on-premises infrastructure, which is hybrid cloud, not multi-cloud.
Quick Answer
The answer is hybrid cloud, because this deployment model explicitly combines on-premises infrastructure with AWS public cloud resources, connected through a dedicated, encrypted network link like AWS Direct Connect. The financial institution retains sensitive data in its own data center for regulatory compliance while leveraging AWS for compute-intensive analytics, which perfectly illustrates the hybrid cloud concept of orchestrating two distinct environments as a unified system. On the AWS Certified Cloud Practitioner CLF-C02 exam, this scenario tests your ability to distinguish hybrid cloud from other models—common traps include confusing it with a public cloud-only setup (which lacks on-premises components) or a private cloud (which is fully isolated). Remember that hybrid cloud always involves a private, secure connection bridging local and cloud resources, not just any use of both. A simple memory tip: think “hybrid = home + host,” where your on-premises data center is the home and AWS is the host for burstable compute power.
CLF-C02 Cloud Concepts Practice Question
This CLF-C02 practice question tests your understanding of cloud concepts. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A financial institution has regulatory requirements to store sensitive customer data on-premises in its own data center. However, it wants to use AWS for compute-intensive analytics that need to access this data. The company plans to establish a dedicated, encrypted network connection between its data center and AWS. Which cloud deployment model does this scenario describe?
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Hybrid cloud
This scenario describes a hybrid cloud deployment model because it combines on-premises infrastructure (the financial institution's own data center for storing sensitive customer data) with AWS public cloud resources (for compute-intensive analytics). The dedicated, encrypted network connection (such as AWS Direct Connect with IPSec or a VPN) securely bridges the two environments, allowing data to be accessed from AWS without being stored there, which meets regulatory requirements. Hybrid cloud is defined as a mixed computing environment where on-premises and public cloud resources are orchestrated together, often via a private network link.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Public cloud
Why it's wrong here
Incorrect. A public cloud deployment would run all resources on AWS, not on-premises. This scenario uses AWS for compute but retains data on-premises, so it is not purely public cloud.
- ✗
Private cloud
Why it's wrong here
Incorrect. A private cloud is a cloud environment dedicated to a single organization, typically hosted on-premises or in a colocation facility. This scenario uses AWS, a public cloud provider, making it hybrid, not purely private.
- ✓
Hybrid cloud
Why this is correct
Correct. Hybrid cloud is the integration of on-premises infrastructure (private cloud) with public cloud services. The company keeps sensitive data on-premises and extends compute capabilities to AWS, connected via a dedicated encrypted link, which is a classic hybrid cloud architecture.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Multi-cloud
Why it's wrong here
Incorrect. Multi-cloud refers to using multiple public cloud providers (e.g., AWS, Azure, GCP). This scenario involves only one public provider (AWS) combined with on-premises infrastructure, which is hybrid cloud, not multi-cloud.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse 'hybrid cloud' with 'multi-cloud' or 'private cloud,' but hybrid cloud specifically requires a mix of on-premises and public cloud resources connected via a private network, not just any combination of cloud providers or exclusive use of a single cloud.
Trap categories for this question
Scenario analysis trap
Incorrect. A public cloud deployment would run all resources on AWS, not on-premises. This scenario uses AWS for compute but retains data on-premises, so it is not purely public cloud.
Detailed technical explanation
How to think about this question
Under the hood, a hybrid cloud architecture often leverages AWS Direct Connect to establish a dedicated, low-latency, encrypted connection (using MACsec or IPSec) between the on-premises data center and AWS, bypassing the public internet for compliance and performance. The sensitive data remains on-premises, while compute instances in AWS VPCs access it via private IP addresses over the Direct Connect link, using services like AWS PrivateLink or VPC endpoints to avoid data egress. In real-world scenarios, financial institutions use this model to run analytics with Amazon EMR or AWS Glue while keeping PII data on-premises, ensuring compliance with regulations like PCI DSS or GDPR.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
TExam Day Tips
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A company's IT admin needs to give a contractor read-only access to production logs without sharing account credentials. Using role-based access control (RBAC) and temporary scoped permissions — not a permanent shared password — is the correct pattern. Questions like this test whether you can apply least-privilege access across cloud identity services.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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Cloud Concepts — study guide chapter
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FAQ
Questions learners often ask
What does this CLF-C02 question test?
Cloud Concepts — This question tests Cloud Concepts — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Hybrid cloud — This scenario describes a hybrid cloud deployment model because it combines on-premises infrastructure (the financial institution's own data center for storing sensitive customer data) with AWS public cloud resources (for compute-intensive analytics). The dedicated, encrypted network connection (such as AWS Direct Connect with IPSec or a VPN) securely bridges the two environments, allowing data to be accessed from AWS without being stored there, which meets regulatory requirements. Hybrid cloud is defined as a mixed computing environment where on-premises and public cloud resources are orchestrated together, often via a private network link.
What should I do if I get this CLF-C02 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
About these practice questions
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Last reviewed: Jun 11, 2026
This CLF-C02 practice question is part of Courseiva's free Amazon Web Services certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the CLF-C02 exam.
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