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SAA-C03 Design Cost-Optimized Architectures Practice Question

A company runs a stateless web application on a fleet of six On-Demand EC2 instances behind an Application Load Balancer. The instances are spread across three Availability Zones in a single AWS Region and run 24/7. The workload is steady and predictable, and the company wants to reduce compute costs without changing the application architecture or reducing availability. The company is willing to commit to a one-year term. Which two actions will reduce the EC2 compute cost for this workload? (Choose two.)

⚠ Common exam trap

The trap here is assuming that any discount mechanism is interchangeable, when the requirement to keep availability high across three Availability Zones rules out interruption-prone capacity even though it is cheaper.

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

✓

Purchase a one-year Standard Reserved Instance for each of the six running instances in the same instance family and Region.

For steady, predictable, always-on compute, commitment-based discounts are the correct lever. Compute Savings Plans and Standard Reserved Instances both convert On-Demand hourly pricing into a lower committed rate for a one-year term, satisfying the cost goal while preserving the multi-AZ, always-available design. Spot capacity and monitoring changes do not meet the availability requirement or do not change the compute rate.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • ✓

    Purchase a one-year Standard Reserved Instance for each of the six running instances in the same instance family and Region.

    Why this is correct

    Standard Reserved Instances for a specific instance family and Region provide a significant discount compared to On-Demand for steady-state usage and are a valid way to reduce cost when the instance family is stable. Because the fleet is constant and the term matches the company's one-year willingness to commit, this achieves the cost reduction without altering the architecture or availability.

  • ✗

    Enable detailed monitoring on all instances and configure an Auto Scaling target tracking policy at 40% CPU.

    Why it's wrong here

    Detailed monitoring improves metric granularity and target tracking can right-size capacity, but the scenario states the workload is already steady and predictable, so there is little waste to remove. Detailed monitoring also adds a small per-instance charge. Neither action lowers the hourly compute rate, so the compute cost for this constant fleet would not meaningfully decrease.

  • ✗

    Replace the On-Demand instances with Spot Instances and let the Auto Scaling group replace any interrupted capacity.

    Why it's wrong here

    Spot Instances are unsuitable here because the requirement explicitly rules out reducing availability, and Spot capacity can be reclaimed with only a two-minute interruption notice. Although Spot is cheaper, the risk of losing all six instances during a capacity event directly violates the stated availability constraint, so this is not an acceptable cost optimization for this workload.

  • ✓

    Purchase a one-year Compute Savings Plan covering the expected steady-state compute usage.

    Why this is correct

    Compute Savings Plans apply to EC2 usage regardless of instance family, size, tenancy, operating system, or Region, and they also cover Fargate and Lambda. Because the workload is steady and predictable, a one-year commitment will discount the qualifying compute spend without requiring any change to instance types, Availability Zone spread, or the application architecture.

  • ✗

    Move the instances into a placement group and enable cluster networking between them.

    Why it's wrong here

    Placement groups influence network latency and throughput between instances, not the price paid for compute. Cluster placement groups can actually reduce resilience because they pack instances close together, which conflicts with the requirement to keep availability high across three Availability Zones. This action does not change the On-Demand billing rate at all.

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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.