- A
Use Compute Optimizer recommendations to identify a smaller instance type.
Compute Optimizer analyzes historical utilization and suggests instance sizes that better match actual demand. That makes it a low-risk first step for finding a cheaper right-sized option before changing production capacity.
- B
Update the launch template or Auto Scaling group to the smaller instance type after testing.
After validating the recommendation, changing the launch template or Auto Scaling group is the action that reduces spend in production. This preserves continuous availability while reducing the amount of compute capacity that is paid for each hour.
- C
Move the workload to Dedicated Hosts.
Why wrong: Dedicated Hosts are typically used for compliance, licensing, or tenancy requirements, not for cost reduction. They usually increase cost relative to shared EC2 capacity and do not address overprovisioning.
- D
Add a second NAT Gateway.
Why wrong: A second NAT Gateway raises networking cost and has no effect on CPU overprovisioning. It does not help right-size the compute fleet or reduce instance spend.
- E
Enable Provisioned Concurrency for the EC2 workload.
Why wrong: Provisioned Concurrency is an AWS Lambda feature and does not apply to EC2 instances. It would not reduce the cost of this fleet or help with instance sizing.
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. 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.
An application team sees that a fleet of EC2 instances averages 15% CPU utilization and has no memory pressure. The service must keep running continuously, but the team wants to lower cost with minimal risk. Which two actions should they take first? Select two.
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue:
"first"Why it matters: Order matters here. You are being tested on which action comes before the others — not which action is generally useful.
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
Use Compute Optimizer recommendations to identify a smaller instance type.
AWS Compute Optimizer analyzes historical utilization metrics (CPU, memory, network) and provides rightsizing recommendations. Since the fleet averages only 15% CPU with no memory pressure, downsizing to a smaller instance type reduces cost without impacting performance. This is the first step to identify the optimal instance family and size.
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.
- ✓
Use Compute Optimizer recommendations to identify a smaller instance type.
Why this is correct
Compute Optimizer analyzes historical utilization and suggests instance sizes that better match actual demand. That makes it a low-risk first step for finding a cheaper right-sized option before changing production capacity.
Clue confirmation
The clue word "first" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
- ✓
Update the launch template or Auto Scaling group to the smaller instance type after testing.
Why this is correct
After validating the recommendation, changing the launch template or Auto Scaling group is the action that reduces spend in production. This preserves continuous availability while reducing the amount of compute capacity that is paid for each hour.
Clue confirmation
The clue word "first" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Move the workload to Dedicated Hosts.
Why it's wrong here
Dedicated Hosts are typically used for compliance, licensing, or tenancy requirements, not for cost reduction. They usually increase cost relative to shared EC2 capacity and do not address overprovisioning.
- ✗
Add a second NAT Gateway.
- ✗
Enable Provisioned Concurrency for the EC2 workload.
Why it's wrong here
Provisioned Concurrency is an AWS Lambda feature and does not apply to EC2 instances. It would not reduce the cost of this fleet or help with instance sizing.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates may confuse Provisioned Concurrency (Lambda-only) with EC2 features, or assume Dedicated Hosts are cost-saving when they actually increase cost for most workloads.
Detailed technical explanation
How to think about this question
Compute Optimizer uses CloudWatch metrics (CPU, memory, EBS throughput, network I/O) over the past 14 days to generate rightsizing recommendations. It considers instance families (e.g., t3 vs. m5) and sizes, factoring in burstable credits for T-series instances. In a real-world scenario, if the workload is steady-state with low CPU, moving from an m5.large to a t3.medium could reduce costs by ~40% while still meeting performance needs, but you must test for burstable credit exhaustion.
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: Use Compute Optimizer recommendations to identify a smaller instance type. — AWS Compute Optimizer analyzes historical utilization metrics (CPU, memory, network) and provides rightsizing recommendations. Since the fleet averages only 15% CPU with no memory pressure, downsizing to a smaller instance type reduces cost without impacting performance. This is the first step to identify the optimal instance family and size.
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: "first". Order matters here. You are being tested on which action comes before the others — not which action is generally useful.
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
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.
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