Question 142 of 1,040
Design Cost-Optimized ArchitecturesmediumMultiple ChoiceObjective-mapped

SAA-C03 Design Cost-Optimized Architectures Practice Question

This SAA-C03 practice question tests your understanding of design cost-optimized architectures. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. 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 production internal reporting portal runs continuously on EC2 with predictable usage for the next three years. The team wants a discount while retaining some instance-family flexibility. What should they buy?

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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

Compute Savings Plan

A Compute Savings Plan offers the lowest prices on EC2 usage (up to 66% off On-Demand) in exchange for a 1- or 3-year commitment, and it automatically applies to any EC2 instance family in any region, giving the flexibility the team needs. Since the workload runs continuously with predictable usage for three years, this plan is ideal for reducing costs while retaining the ability to change instance families if needed.

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.

  • Spot Instances only

    Why it's wrong here

    Spot is interruptible and not ideal for always-on production baselines.

  • Dedicated Instances

    Why it's wrong here

    Dedicated Instances isolate hardware but do not primarily optimize cost.

  • Compute Savings Plan

    Why this is correct

    Compute Savings Plans provide discounts for a committed spend while allowing flexibility across instance families, sizes, Regions, and compute services.

    Related concept

    Read the scenario before looking for a memorised answer.

  • S3 Intelligent-Tiering

    Why it's wrong here

    S3 Intelligent-Tiering optimizes object storage, not EC2 compute spend.

Common exam traps

Common exam trap: answer the scenario, not the keyword

The trap here is that candidates often confuse Compute Savings Plans with EC2 Instance Savings Plans, assuming any Savings Plan locks you to a specific instance family, but Compute Savings Plans provide broader flexibility across families and services.

Detailed technical explanation

How to think about this question

A Compute Savings Plan is a flexible discount model that applies to EC2, Fargate, and Lambda usage, automatically covering any instance family (e.g., from m5 to c6g) within a chosen region. The commitment is measured in dollars per hour (e.g., $10/hour for 3 years), and any usage above the commitment is billed at On-Demand rates, making it ideal for predictable baselines with potential for instance-type changes. In contrast, EC2 Instance Savings Plans lock you to a specific instance family in a region, which would be too restrictive for the team's requirement.

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 SAA-C03 question test?

Design Cost-Optimized Architectures — This question tests Design Cost-Optimized Architectures — Read the scenario before looking for a memorised answer..

What is the correct answer to this question?

The correct answer is: Compute Savings Plan — A Compute Savings Plan offers the lowest prices on EC2 usage (up to 66% off On-Demand) in exchange for a 1- or 3-year commitment, and it automatically applies to any EC2 instance family in any region, giving the flexibility the team needs. Since the workload runs continuously with predictable usage for three years, this plan is ideal for reducing costs while retaining the ability to change instance families if needed.

What should I do if I get this SAA-C03 question wrong?

Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.

What is the key concept behind this question?

Read the scenario before looking for a memorised answer.

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Last reviewed: Jun 11, 2026

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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.