- A
On-Demand Instances
Why wrong: On-Demand Instances provide full flexibility and no commitment, but they have the highest per-hour cost, making them the least cost-effective option for a 3-year continuous workload.
- B
Spot Instances
Why wrong: Spot Instances offer significant discounts but can be interrupted with little notice. They are not suitable for a steady-state web server that must run continuously 24/7.
- C
Standard Reserved Instances with a 3-year term and all upfront payment
Standard Reserved Instances provide a substantial discount over On-Demand pricing when you commit to a 1- or 3-year term. Paying all upfront gives the highest discount, making this the most cost-effective option for a predictable, long-running workload.
- D
Dedicated Hosts
Why wrong: Dedicated Hosts provide physical servers dedicated to the customer, which is useful for software licensing or compliance requirements. However, they are more expensive than Reserved Instances and are not needed for a standard web server workload.
Quick Answer
The answer is Standard Reserved Instances with a 3-year term and all upfront payment. This pricing model minimizes cost for a steady-state workload running 24/7 for three years because it offers the deepest discount—up to 72% off On-Demand rates—in exchange for a commitment to a specific instance configuration over a long, predictable period. Since the web server has no usage spikes and runs continuously, the all upfront payment option locks in the lowest effective hourly rate, making it the most cost-efficient choice. On the AWS Certified Cloud Practitioner CLF-C02 exam, this scenario tests your understanding of the trade-off between flexibility and savings: Reserved Instances are ideal for steady-state, long-term workloads, while On-Demand or Spot Instances are traps for variable or short-term needs. A common mistake is choosing a 1-year term, but the 3-year all upfront option always yields greater savings for a three-year commitment. Memory tip: think “3-All-Steady”—three-year term, all upfront payment, for steady-state workloads.
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 is migrating a steady-state web server to AWS. The server is expected to run continuously (24 hours a day, 7 days a week) for the next three years. The workload has predictable CPU and memory usage and does not experience significant spikes. The company wants to minimize the total cost of running this server over the three-year period. Which AWS EC2 pricing model should the company choose?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue:
"minimum / minimize"Why it matters: Asks for the least resource use — fewest addresses, smallest subnet, lowest overhead. Eliminate over-provisioned options even if they would technically work.
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
Standard Reserved Instances with a 3-year term and all upfront payment
Standard Reserved Instances with a 3-year term and all upfront payment provide the highest discount (up to 72% compared to On-Demand) for workloads that run continuously and predictably. Since this server will run 24/7 for three years with no significant spikes, a 3-year all upfront Reserved Instance minimizes total cost by locking in the lowest effective hourly rate.
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.
- ✗
On-Demand Instances
Why it's wrong here
On-Demand Instances provide full flexibility and no commitment, but they have the highest per-hour cost, making them the least cost-effective option for a 3-year continuous workload.
- ✗
Spot Instances
Why it's wrong here
Spot Instances offer significant discounts but can be interrupted with little notice. They are not suitable for a steady-state web server that must run continuously 24/7.
- ✓
Standard Reserved Instances with a 3-year term and all upfront payment
Why this is correct
Standard Reserved Instances provide a substantial discount over On-Demand pricing when you commit to a 1- or 3-year term. Paying all upfront gives the highest discount, making this the most cost-effective option for a predictable, long-running workload.
Clue confirmation
The clue word "minimum / minimize" in the question point toward this answer.
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 the customer, which is useful for software licensing or compliance requirements. However, they are more expensive than Reserved Instances and are not needed for a standard web server workload.
Common exam traps
Common exam trap: answer the scenario, not the keyword
AWS often tests the misconception that Spot Instances are always cheaper and can be used for any workload, but the trap here is that Spot Instances are interruptible and thus unsuitable for continuous, steady-state production servers.
Detailed technical explanation
How to think about this question
Reserved Instances are a billing discount applied to a specific instance family in a region or Availability Zone, not a physical reservation of capacity. The all upfront payment option yields the largest discount because AWS receives the full payment at the start, reducing its financial risk. For a 3-year term, the discount can reach 60-72% off On-Demand pricing, which is critical for long-term cost optimization in steady-state workloads.
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: Standard Reserved Instances with a 3-year term and all upfront payment — Standard Reserved Instances with a 3-year term and all upfront payment provide the highest discount (up to 72% compared to On-Demand) for workloads that run continuously and predictably. Since this server will run 24/7 for three years with no significant spikes, a 3-year all upfront Reserved Instance minimizes total cost by locking in the lowest effective hourly rate.
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.
Are there clue words in this question I should notice?
Yes — watch for: "minimum / minimize". Asks for the least resource use — fewest addresses, smallest subnet, lowest overhead. Eliminate over-provisioned options even if they would technically work.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 30, 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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