This ANS-C01 practice question tests your understanding of network design. 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 designing a multi-VPC architecture in the same region. The VPCs need to communicate with each other using private IP addresses. The company must minimize cost and operational overhead. Which solution should the company use?
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 the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Create VPC peering connections between each pair of VPCs.
Option C is correct because VPC peering connections provide direct, private IP connectivity between VPCs using the AWS global network, with no bandwidth bottlenecks or single points of failure. It is the most cost-effective solution for a small number of VPCs (e.g., fewer than 10) as there are no hourly charges for the peering connection itself—only data transfer costs. This minimizes operational overhead compared to managing VPN tunnels or a Transit Gateway, as peering is a simple, one-to-one relationship that does not require additional appliances or complex routing policies.
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.
✗
Set up AWS Site-to-Site VPN connections between each VPC.
Create VPC peering connections between each pair of VPCs.
Why this is correct
VPC peering is simple, low-cost, and uses private IPs.
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.
✗
Create a Transit Gateway and attach all VPCs.
Why it's wrong here
Transit Gateway is more expensive and complex than peering for few VPCs.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often choose Transit Gateway (Option D) because it is a modern, centralized solution, but they overlook the specific constraint of minimizing cost and operational overhead for a small number of VPCs, where VPC peering is simpler and cheaper.
Detailed technical explanation
How to think about this question
VPC peering uses the existing AWS infrastructure to route traffic between VPCs via the AWS global backbone, avoiding the public internet or virtual appliances. However, transitive routing is not supported—each pair of VPCs requires a separate peering connection, and overlapping CIDR blocks cannot be peered. In a real-world scenario, if the company has only 3–5 VPCs, peering is ideal; but if the architecture grows to dozens of VPCs, the mesh complexity would make Transit Gateway more manageable despite the higher cost.
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.
Network Design — This question tests Network Design — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Create VPC peering connections between each pair of VPCs. — Option C is correct because VPC peering connections provide direct, private IP connectivity between VPCs using the AWS global network, with no bandwidth bottlenecks or single points of failure. It is the most cost-effective solution for a small number of VPCs (e.g., fewer than 10) as there are no hourly charges for the peering connection itself—only data transfer costs. This minimizes operational overhead compared to managing VPN tunnels or a Transit Gateway, as peering is a simple, one-to-one relationship that does not require additional appliances or complex routing policies.
What should I do if I get this ANS-C01 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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Question Discussion
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