Courseiva

CLF-C02 Billing, Pricing, and Support Practice Question

A company is using Amazon EC2 and wants to understand the difference between Compute Savings Plans and EC2 Instance Savings Plans. Which statement is accurate?

⚠ Common exam trap

A common mix-up: candidates assume Compute Savings Plans always provide higher discounts due to their broader scope, but in reality, the discount is lower because flexibility is traded for a reduced rate, while EC2 Instance Savings Plans offer higher discounts for committing to a more specific usage pattern.

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

✓

Compute Savings Plans apply to any EC2 instance, Fargate, and Lambda usage, while EC2 Instance Savings Plans apply to a specific instance family and region

Compute Savings Plans offer the broadest flexibility, automatically applying to any EC2 instance (regardless of family, size, or region), as well as AWS Fargate and AWS Lambda usage. In contrast, EC2 Instance Savings Plans are restricted to a specific instance family within a chosen region, providing a narrower scope of coverage. This distinction is fundamental to understanding how each plan optimizes costs based on workload flexibility.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • ✗

    Compute Savings Plans provide higher discounts than EC2 Instance Savings Plans

    Why it's wrong here

    This statement reverses the actual discount hierarchy. EC2 Instance Savings Plans offer the larger discount, up to 72%, because they require a firm commitment to a specific instance family and region. Compute Savings Plans, which allow you to change families, regions, and even use Fargate or Lambda, provide up to 66% off. The relationship is inverse: greater flexibility yields a lower potential savings rate.

  • ✗

    EC2 Instance Savings Plans are more flexible and apply across all instance families

    Why it's wrong here

    EC2 Instance Savings Plans are actually the more restrictive option—you commit to a single instance family and a single region for a 1- or 3-year term. This commitment unlocks the higher discount, but your usage is locked to that family and region; switching to any other family or region forfeits the savings. In contrast, Compute Savings Plans apply to any instance family, any region, plus Fargate and Lambda, which is the flexibility wrongly attributed to EC2 Instance Plans.

  • ✓

    Compute Savings Plans apply to any EC2 instance, Fargate, and Lambda usage, while EC2 Instance Savings Plans apply to a specific instance family and region

    Why this is correct

    Compute Savings Plans deliver maximum flexibility by automatically covering any EC2 instance across all families and regions, as well as AWS Fargate and AWS Lambda usage. EC2 Instance Savings Plans, on the other hand, bind you to a specific instance family in a specific region, which enables the higher discount (up to 72%) because you are surrendering flexibility. This trade-off between flexibility and discount depth is the fundamental distinction between the two products.

  • ✗

    Both Savings Plans types require specifying the exact instance size at purchase

    Why it's wrong here

    Purchasing a Savings Plan does not involve selecting an instance size at any point. Instead, you commit to an hourly dollar amount, and the plan automatically applies to any instance size within its scope—for EC2 Instance Savings Plans, any size in the chosen family and region; for Compute Savings Plans, any size across all families. This size flexibility is inherent and happens automatically, so stating that an exact instance size must be specified is incorrect.

Quick reference

Cloud Service Model Comparison

ModelYou ManageProvider ManagesExamples
IaaSOS, runtime, apps, dataHardware, hypervisor, networkingEC2, Azure VMs, GCP Compute Engine
PaaSApps and dataOS, runtime, middleware, hardwareElastic Beanstalk, Azure App Service
SaaSData and settings onlyEverything elseMicrosoft 365, Salesforce, Workday
FaaS / ServerlessFunction code onlyInfra, scaling, runtimeLambda, Azure Functions, Cloud Run
CaaSContainers and appsKubernetes, OS, hardwareEKS, AKS, GKE

About these practice questions

One of 993 original CLF-C02 practice questions on Courseiva, each with a full explanation and wrong-answer analysis — not exam dumps or protected exam content. Learn why practice questions differ from exam dumps →

How Courseiva writes practice questions · Editorial policy

JA

Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

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.