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 network for a real-time trading application that requires extremely low latency (sub-millisecond) between two EC2 instances located in the same AWS region. The instances are in different Availability Zones. The trading application uses a proprietary protocol over TCP. The company wants to minimize latency as much as possible. They are considering using a placement group. Which type of placement group should they use, and what network optimization should they apply?
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
✓
Use a cluster placement group for both instances and enable enhanced networking (SR-IOV)
A cluster placement group is the only placement group type that provides low-latency, high-bandwidth network performance by placing instances in a single Availability Zone within the same rack. Enhanced networking using SR-IOV (Single Root I/O Virtualization) bypasses the hypervisor's network stack, reducing per-packet processing latency and jitter, which is critical for sub-millisecond trading traffic over TCP.
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.
✗
Use a spread placement group and enable dedicated tenancy
Why it's wrong here
Spread placement group does not optimize latency; dedicated tenancy adds overhead.
✗
Use a partition placement group and enable EBS-optimized instances
Why it's wrong here
Partition placement group is for fault tolerance, not latency.
✓
Use a cluster placement group for both instances and enable enhanced networking (SR-IOV)
Why this is correct
Cluster placement group provides low latency; enhanced networking reduces overhead.
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.
✗
Use a cluster placement group but launch instances in different Availability Zones
Why it's wrong here
Cluster placement group cannot span AZs.
Common exam traps
Common exam trap: answer the scenario, not the keyword
AWS often tests the misconception that a cluster placement group can span multiple Availability Zones, but in reality, it is confined to a single AZ to guarantee low-latency physical proximity.
Detailed technical explanation
How to think about this question
Enhanced networking with SR-IOV provides direct access to the Elastic Network Adapter (ENA) or Intel 82599 VF, achieving up to 100 Gbps network speeds with lower CPU overhead. In a cluster placement group, instances are co-located within a single 10 Gbps or 25 Gbps non-blocking full-bisection network, enabling sub-100 microsecond latencies between instances. The proprietary TCP protocol benefits from reduced jitter and packet loss inherent in this physical proximity.
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
An e-commerce site experiences heavy traffic on Black Friday and near-zero traffic during off-peak weeks. Rather than provisioning permanent large VMs, the team uses auto-scaling groups that add capacity automatically under load and reduce it overnight. Questions like this test whether you understand elasticity, availability zones, and cloud compute scaling patterns.
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: Use a cluster placement group for both instances and enable enhanced networking (SR-IOV) — A cluster placement group is the only placement group type that provides low-latency, high-bandwidth network performance by placing instances in a single Availability Zone within the same rack. Enhanced networking using SR-IOV (Single Root I/O Virtualization) bypasses the hypervisor's network stack, reducing per-packet processing latency and jitter, which is critical for sub-millisecond trading traffic over TCP.
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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