- A
Spot Instances
Why wrong: Spot Instances can provide up to 90% discount but can be interrupted by AWS with 2 minutes notice. They are not suitable for database servers that require consistent, uninterrupted availability.
- B
On-Demand Instances
Why wrong: On-Demand is the baseline pricing with no commitment and no discount. It is the most expensive option for steady-state workloads.
- C
Reserved Instances (3-year, all upfront)
3-year Reserved Instances with all-upfront payment provide the maximum EC2 discount. For database servers with consistent, predictable 24/7 use over 3 years, this commitment results in the greatest cost savings.
- D
Dedicated Hosts
Why wrong: Dedicated Hosts provide physical servers dedicated to a single customer, often for compliance or licensing reasons. They do not provide the greatest discount for standard compute workloads.
Quick Answer
The answer is Reserved Instances with a 3-year term and all upfront payment, as this purchasing option provides the greatest discount compared to On-Demand pricing. AWS offers tiered savings for committing to consistent, predictable workloads, and the 3-year all upfront Reserved Instance delivers up to a 72% discount over On-Demand rates because you pay the entire cost upfront in exchange for the longest commitment term. On the AWS Certified Cloud Practitioner CLF-C02 exam, this concept tests your understanding of cost optimization for steady-state usage—database servers running 24/7 for three years are a textbook scenario for this option. A common trap is choosing a 1-year term or partial upfront payment, but remember that longer commitment and higher upfront payment always yield deeper savings. Memory tip: think "3-All-Up" for "3-year, All upfront, Ultimate discount."
CLF-C02 Billing, Pricing, and Support Practice Question
This CLF-C02 practice question tests your understanding of billing, pricing, and support. 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 company runs database servers that require consistent EC2 capacity 24/7 for the next 3 years. Which EC2 purchasing option provides the greatest discount compared to On-Demand pricing?
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
Reserved Instances (3-year, all upfront)
Reserved Instances (RIs) with a 3-year term and all upfront payment provide the highest discount compared to On-Demand pricing because they commit to a consistent, predictable workload for an extended period. AWS offers significant pricing tiers for RIs, with the 3-year all upfront option yielding up to 72% discount over On-Demand, which is the greatest among all purchasing options for steady-state usage.
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.
- ✗
Spot Instances
Why it's wrong here
Spot Instances can provide up to 90% discount but can be interrupted by AWS with 2 minutes notice. They are not suitable for database servers that require consistent, uninterrupted availability.
- ✗
On-Demand Instances
Why it's wrong here
On-Demand is the baseline pricing with no commitment and no discount. It is the most expensive option for steady-state workloads.
- ✓
Reserved Instances (3-year, all upfront)
Why this is correct
3-year Reserved Instances with all-upfront payment provide the maximum EC2 discount. For database servers with consistent, predictable 24/7 use over 3 years, this commitment results in the greatest cost savings.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Dedicated Hosts
Why it's wrong here
Dedicated Hosts provide physical servers dedicated to a single customer, often for compliance or licensing reasons. They do not provide the greatest discount for standard compute workloads.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse Spot Instances as the cheapest option overall, but the question specifies 'consistent EC2 capacity 24/7 for the next 3 years,' which disqualifies Spot Instances due to their lack of reliability and potential for termination, making Reserved Instances the correct choice for maximum discount under those constraints.
Detailed technical explanation
How to think about this question
Reserved Instances are a billing discount applied to a specific instance family in a specific region, not a physical reservation of capacity. The discount increases with the term length (1-year vs. 3-year) and payment option (no upfront, partial upfront, all upfront), with all upfront providing the maximum discount because AWS receives the full payment immediately, reducing their financial risk. For database workloads like MySQL or Oracle, RIs ensure consistent pricing and capacity availability, which is critical for production environments that cannot tolerate interruptions.
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 startup's cloud architect reviews their monthly bill and notices costs are higher than expected for a long-running batch job. Switching from on-demand instances to Reserved Instances — or using Spot/Preemptible VMs — can reduce compute costs by up to 72 %. Questions like this test whether you understand the tradeoffs between commitment, flexibility, and cost across cloud pricing models.
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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FAQ
Questions learners often ask
What does this CLF-C02 question test?
Billing, Pricing, and Support — This question tests Billing, Pricing, and Support — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Reserved Instances (3-year, all upfront) — Reserved Instances (RIs) with a 3-year term and all upfront payment provide the highest discount compared to On-Demand pricing because they commit to a consistent, predictable workload for an extended period. AWS offers significant pricing tiers for RIs, with the 3-year all upfront option yielding up to 72% discount over On-Demand, which is the greatest among all purchasing options for steady-state usage.
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
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
Same concept, more angles
1 more ways this is tested on CLF-C02
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. A company wants to purchase EC2 capacity that provides a discount over On-Demand pricing and is available only when AWS has excess capacity, with the option of interruption with a 2-minute warning. Which option is this?
medium- A.Reserved Instances
- B.On-Demand Instances
- ✓ C.Spot Instances
- D.Dedicated Instances
Why C: Spot Instances (Option C) are correct because they offer a significant discount over On-Demand pricing but can be interrupted by AWS with a 2-minute warning when AWS needs the capacity back. This matches the scenario of purchasing EC2 capacity that is available only when AWS has excess capacity and includes the risk of interruption.
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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