SAA-C03 Design Cost-Optimized Architectures Practice Question
A company has a steady-state workload on Amazon EC2 that runs 24/7 for the next 3 years. They want to achieve the maximum possible discount and are willing to make a upfront payment. Which purchasing option should they choose?
⚠ Common exam trap
The trap here is assuming that Spot Instances always provide the greatest discount, but they are unsuitable for workloads that cannot tolerate interruptions, such as a 24/7 steady-state service.
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 with All Upfront payment
Reserved Instances with All Upfront payment offer the maximum discount for a 3-year commitment on a steady-state workload. This option provides significant savings over On-Demand and is more reliable than Spot. Dedicated Hosts are not cost-optimized for general workloads. Therefore, All Upfront Reserved Instances are the best choice for maximum discount.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Reserved Instances with All Upfront payment
Why this is correct
Reserved Instances with All Upfront payment provide the highest discount (up to 72% off On-Demand) for a 1- or 3-year commitment. By paying the entire amount upfront, the company maximizes savings. This option is ideal for steady-state workloads where the instance type and region are known, and the company is willing to commit for 3 years.
- ✗
On-Demand Instances
Why it's wrong here
On-Demand Instances have no upfront commitment and are billed per second, but they are the most expensive option for long-term steady-state workloads. They do not offer any discount for commitment. For a 3-year 24/7 workload, On-Demand would result in significantly higher costs compared to Reserved Instances or Savings Plans.
- ✗
Spot Instances
Why it's wrong here
Spot Instances offer the largest discounts but can be interrupted with a two-minute warning. For a steady-state workload that must run 24/7 without interruption, Spot is not suitable. Even though the discount is higher, the risk of interruption makes it inappropriate for this scenario.
- ✗
Dedicated Hosts with All Upfront payment
Why it's wrong here
Dedicated Hosts provide a physical server dedicated to the customer and can be purchased with All Upfront payment, but they are more expensive than Reserved Instances for the same instance capacity. They are intended for licensing and compliance requirements, not for general cost optimization. For a standard workload without such needs, Dedicated Hosts are not cost-effective.
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Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official Amazon Web Services exam blueprint
This SAA-C03 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 SAA-C03 exam.