An Auto Scaling group for a background worker runs EC2 instances continuously. Over the last 30 days, CloudWatch shows sustained CPU utilization around 6% with no memory pressure, and queue processing latency meets all SLAs. The team wants to lower monthly cost with minimal risk. What is the best next action?

Increase the instance size to reduce CPU throttling risk

The metrics show sustained low CPU with no reported throttling risk. Increasing size would likely increase cost immediately without addressing an existing performance problem.

Switch the group to Spot Instances to reduce cost without changing instance sizing

Spot could reduce compute price, but it introduces interruption risk and additional operational complexity. When the primary waste is clearly overprovisioned capacity, downsizing is the more direct and lower-risk cost optimization.

Buy Reserved Instances with a long term commitment before making any sizing changes

Purchasing capacity commitments can reduce unit price, but it does not fix the cost waste from running much larger-than-needed instances. Since the instance utilization indicates overprovisioning, right sizing should come first to maximize savings with minimal risk.

What does this SAA-C03 question test?

Read the scenario before looking for a memorised answer.

What is the correct answer to this question?

The correct answer is: Perform right sizing by downsizing to a smaller instance family/size and validate SLAs — Right sizing is the best next action. The workload is already meeting latency SLAs and shows sustained low CPU (~6%) with no memory pressure, which indicates overprovisioned capacity. The safest approach is to downsize (or move to a more efficient instance family) and validate performance/latency during a controlled rollout, ensuring SLAs remain satisfied before broader changes. Increasing instance size targets a risk that the metrics do not show and would likely raise cost. Switching to Spot does not address the root cause of wasted capacity and can add interruption handling complexity. Reserved Instances/Savings Plans can lower unit cost, but they do not correct the fact that the instances are running far below needed capacity, so overall savings may be less than downsizing first.

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

Then try more questions from the same exam bank and focus on understanding why the wrong options are tempting.