- A
Purchase an All Upfront Reserved Instance for the transcoding fleet only.
Why wrong: Reserved Instances fit steady, predictable usage, but this batch fleet is interruption-tolerant and variable.
- B
Buy a Compute Savings Plan to cover the always-on API baseline usage.
Savings Plans reduce cost for consistent compute usage and are well suited to the always-on API.
- C
Run the transcoding fleet on Spot Instances because interrupted jobs can resume from checkpoints.
Spot Instances are ideal for flexible batch processing when interruptions are acceptable and checkpointing exists.
- D
Increase the API instance size so CPU utilization stays below 30 percent.
Why wrong: Larger instances raise cost; right sizing should reduce waste, not add extra unused capacity.
- E
Move the API tier to Dedicated Hosts to improve isolation and lower spend.
Why wrong: Dedicated Hosts usually increase cost and are used for licensing or compliance, not savings.
SAA-C03 Design Cost-Optimized Architectures Practice Question
This SAA-C03 practice question tests your understanding of design cost-optimized architectures. 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. A key principle to apply: compute Savings Plans offer discounts for consistent compute usage.. 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 startup runs two EC2-based workloads in the same AWS Region. Its customer-facing API is always on, and its nightly video transcoding fleet can restart jobs from checkpoints if an instance is interrupted. The finance team wants the lowest monthly compute cost without changing the application design. Which two actions should the team take? Select two.
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue:
"always"Why it matters: Absolute qualifier. An answer using 'always' is only correct if there are genuinely no exceptions — absolute statements are often wrong in networking.
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
Buy a Compute Savings Plan to cover the always-on API baseline usage.
Option B is correct because a Compute Savings Plan offers the lowest cost for steady-state workloads like the always-on API by committing to a consistent amount of compute usage (measured in $/hour) across any EC2 instance family, size, or region, providing up to 66% savings compared to On-Demand. Option C is correct because the transcoding fleet can tolerate interruptions (jobs restart from checkpoints), making Spot Instances ideal for up to 90% discount over On-Demand, which directly minimizes compute cost without architectural changes.
Key principle: Compute Savings Plans offer discounts for consistent compute usage.
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 an All Upfront Reserved Instance for the transcoding fleet only.
Why it's wrong here
Reserved Instances fit steady, predictable usage, but this batch fleet is interruption-tolerant and variable.
- ✓
Buy a Compute Savings Plan to cover the always-on API baseline usage.
Why this is correct
Savings Plans reduce cost for consistent compute usage and are well suited to the always-on API.
Clue confirmation
The clue word "always" in the question point toward this answer.
Related concept
Compute Savings Plans offer discounts for consistent compute usage.
- ✓
Run the transcoding fleet on Spot Instances because interrupted jobs can resume from checkpoints.
Why this is correct
Spot Instances are ideal for flexible batch processing when interruptions are acceptable and checkpointing exists.
Clue confirmation
The clue word "always" in the question point toward this answer.
Related concept
Compute Savings Plans offer discounts for consistent compute usage.
- ✗
Increase the API instance size so CPU utilization stays below 30 percent.
Why it's wrong here
Larger instances raise cost; right sizing should reduce waste, not add extra unused capacity.
- ✗
Move the API tier to Dedicated Hosts to improve isolation and lower spend.
Why it's wrong here
Dedicated Hosts usually increase cost and are used for licensing or compliance, not savings.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often choose Reserved Instances for the transcoding fleet (Option A) because they think 'always-on' workloads need RIs, but they overlook that Spot Instances are far cheaper for interruptible workloads, and a Compute Savings Plan (Option B) covers the API baseline more flexibly than an instance-specific RI.
Detailed technical explanation
How to think about this question
Compute Savings Plans apply to any EC2 instance, including Fargate and Lambda, and automatically discount usage up to the committed hourly amount, making them ideal for baseline workloads with variable instance families. Spot Instances use spare AWS capacity and can be reclaimed with a 2-minute warning, but checkpointing allows the transcoding job to resume from the last saved state, ensuring no data loss. The combination of a Savings Plan for steady-state and Spot for fault-tolerant workloads is a classic cost-optimization pattern in the AWS Well-Architected Framework.
KKey Concepts to Remember
- Compute Savings Plans offer discounts for consistent compute usage.
- They apply to EC2, Fargate, and Lambda usage.
- Commitment is based on a consistent spend amount (USD/hour).
- They provide flexibility across instance family, size, OS, and Region.
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
Compute Savings Plans offer discounts for consistent compute usage.
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.
Review compute Savings Plans offer discounts for consistent compute usage., then practise related SAA-C03 questions on the same topic to reinforce the concept.
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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 — Compute Savings Plans offer discounts for consistent compute usage..
What is the correct answer to this question?
The correct answer is: Buy a Compute Savings Plan to cover the always-on API baseline usage. — Option B is correct because a Compute Savings Plan offers the lowest cost for steady-state workloads like the always-on API by committing to a consistent amount of compute usage (measured in $/hour) across any EC2 instance family, size, or region, providing up to 66% savings compared to On-Demand. Option C is correct because the transcoding fleet can tolerate interruptions (jobs restart from checkpoints), making Spot Instances ideal for up to 90% discount over On-Demand, which directly minimizes compute cost without architectural changes.
What should I do if I get this SAA-C03 question wrong?
Review compute Savings Plans offer discounts for consistent compute usage., then practise related SAA-C03 questions on the same topic to reinforce the concept.
Are there clue words in this question I should notice?
Yes — watch for: "always". Absolute qualifier. An answer using 'always' is only correct if there are genuinely no exceptions — absolute statements are often wrong in networking.
What is the key concept behind this question?
Compute Savings Plans offer discounts for consistent compute usage.
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Last reviewed: Jun 11, 2026
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