- A
Keep the current long retention and detailed monitoring; reduce the log volume by sampling 10% of events
Why wrong: Sampling reduces ingest/storage, but it also changes which events are retained. This conflicts with compliance requirements that the full log data must remain available in CloudWatch Logs for 90 days.
- B
Set the CloudWatch Logs retention to 90 days and disable detailed EC2 monitoring (use standard monitoring) for the instances
CloudWatch Logs storage costs are driven primarily by retention period. Setting retention to exactly 90 days reduces storage cost while meeting compliance. Disabling detailed EC2 monitoring reduces the number/granularity of metrics (detailed is billed more than standard), lowering monitoring cost without impacting alarms that don’t require high-resolution metrics.
- C
Move all logs to S3 immediately and delete the CloudWatch log groups to reduce costs
Why wrong: Deleting the CloudWatch log groups would remove the logs from CloudWatch Logs before the required 90-day audit window. Even if data is exported to S3, this does not satisfy the stated compliance requirement that logs remain available in CloudWatch Logs for 90 days.
- D
Increase CloudWatch alarm thresholds to reduce the number of metric datapoints
Why wrong: Alarm thresholds affect when alarms trigger, not how CloudWatch metrics are collected or billed for monitoring. It typically does not reduce the metric ingestion/monitoring cost drivers enough to address the unexpected cost increase.
Quick Answer
The answer is to set the CloudWatch Logs retention to 90 days and disable detailed EC2 monitoring, switching to standard monitoring. This directly reduces CloudWatch costs by addressing the two primary cost drivers: log retention beyond the compliance window and per-minute metric charges from detailed monitoring. Detailed monitoring sends metrics every minute and incurs higher fees, while standard monitoring at five-minute intervals is sufficient for alarms and alerts. On the SAA-C03 exam, this scenario tests your ability to balance cost optimization with compliance requirements, often appearing as a trap where candidates keep detailed monitoring enabled unnecessarily. A common memory tip is to remember that detailed monitoring is for granular troubleshooting, not for basic alerting—if you don’t need sub-minute data, standard monitoring saves money. For logs, always set retention to exactly the compliance requirement, not longer. Think of it as “trim the fat: logs to 90, metrics to 5.”
SAA-C03 Design Cost-Optimized Architectures Practice Question
This SAA-C03 practice question tests your understanding of design cost-optimized architectures. The scenario asks you to isolate a root cause — eliminate options that address a different problem before choosing. 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 team runs an EC2-based service and ships logs to Amazon CloudWatch Logs. They enabled long log retention and turned on detailed monitoring to improve troubleshooting. Their monthly CloudWatch costs have grown unexpectedly. Compliance requires that the logs remain available in CloudWatch Logs (for querying and audits) for 90 days, and alerts/alarms do not require detailed EC2 monitoring. What change best reduces cost while meeting requirements?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue:
"best"Why it matters: Signals that multiple options may be partially correct. Choose the option that most directly solves the exact problem described, not the one that sounds most complete.
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
Set the CloudWatch Logs retention to 90 days and disable detailed EC2 monitoring (use standard monitoring) for the instances
Option B reduces costs by setting CloudWatch Logs retention to exactly 90 days (meeting compliance) and disabling detailed monitoring (which incurs per-minute metrics charges) in favor of standard 5-minute monitoring. This directly addresses the two main cost drivers—long retention and detailed EC2 monitoring—while preserving the required 90-day log availability for queries and audits.
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.
- ✗
Keep the current long retention and detailed monitoring; reduce the log volume by sampling 10% of events
Why it's wrong here
Sampling reduces ingest/storage, but it also changes which events are retained. This conflicts with compliance requirements that the full log data must remain available in CloudWatch Logs for 90 days.
- ✓
Set the CloudWatch Logs retention to 90 days and disable detailed EC2 monitoring (use standard monitoring) for the instances
Why this is correct
CloudWatch Logs storage costs are driven primarily by retention period. Setting retention to exactly 90 days reduces storage cost while meeting compliance. Disabling detailed EC2 monitoring reduces the number/granularity of metrics (detailed is billed more than standard), lowering monitoring cost without impacting alarms that don’t require high-resolution metrics.
Clue confirmation
The clue word "best" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Move all logs to S3 immediately and delete the CloudWatch log groups to reduce costs
Why it's wrong here
Deleting the CloudWatch log groups would remove the logs from CloudWatch Logs before the required 90-day audit window. Even if data is exported to S3, this does not satisfy the stated compliance requirement that logs remain available in CloudWatch Logs for 90 days.
- ✗
Increase CloudWatch alarm thresholds to reduce the number of metric datapoints
Why it's wrong here
Alarm thresholds affect when alarms trigger, not how CloudWatch metrics are collected or billed for monitoring. It typically does not reduce the metric ingestion/monitoring cost drivers enough to address the unexpected cost increase.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates may think sampling logs or moving them to S3 is acceptable, but the requirement explicitly states logs must remain available in CloudWatch Logs for querying and audits, making those options non-compliant.
Detailed technical explanation
How to think about this question
Detailed monitoring on EC2 sends metrics every 1 minute, costing $3.50 per instance per month (at standard pricing), while standard monitoring sends metrics every 5 minutes at no additional cost. CloudWatch Logs charges for data ingestion ($0.50/GB) and storage ($0.03/GB/month); setting retention to 90 days ensures logs are automatically deleted after that period, avoiding indefinite storage costs. Compliance often requires logs to be queryable in CloudWatch Logs, not just archived in S3, because CloudWatch Logs Insights enables real-time search and pattern analysis.
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.
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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: Set the CloudWatch Logs retention to 90 days and disable detailed EC2 monitoring (use standard monitoring) for the instances — Option B reduces costs by setting CloudWatch Logs retention to exactly 90 days (meeting compliance) and disabling detailed monitoring (which incurs per-minute metrics charges) in favor of standard 5-minute monitoring. This directly addresses the two main cost drivers—long retention and detailed EC2 monitoring—while preserving the required 90-day log availability for queries and audits.
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.
Are there clue words in this question I should notice?
Yes — watch for: "best". Signals that multiple options may be partially correct. Choose the option that most directly solves the exact problem described, not the one that sounds most complete.
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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