- 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.
Quick Answer
The answer is to run the transcoding fleet on Spot Instances and purchase a Compute Savings Plan for the always-on API. This combination achieves the lowest monthly compute cost because the Compute Savings Plan provides up to 66% savings over On-Demand for steady-state workloads like the API, while Spot Instances offer up to 90% discounts for fault-tolerant tasks like transcoding that can resume from checkpoints if interrupted. On the SAA-C03 exam, this scenario tests your understanding of matching AWS compute pricing models to workload characteristics—specifically, that Savings Plans cover baseline usage across any instance family, while Spot Instances are ideal for stateless or checkpointable jobs. A common trap is assuming Reserved Instances are always cheaper, but Savings Plans offer more flexibility for mixed instance types. Memory tip: steady-state gets the Savings Plan, spotty jobs get Spot Instances.
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.
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, providing up to 66% savings over On-Demand in exchange for a 1- or 3-year commitment. It applies to any EC2 instance family within a Region, making it flexible and cost-effective for the baseline usage. Option C is correct because Spot Instances can be up to 90% cheaper than On-Demand and are ideal for fault-tolerant workloads like the transcoding fleet, which can resume from checkpoints if interrupted.
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.
- ✗
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
Read the scenario before looking for a memorised answer.
- ✓
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
Read the scenario before looking for a memorised answer.
- ✗
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 assume Reserved Instances are always the cheapest option, but for interruptible workloads like transcoding, Spot Instances provide far greater savings, and a Savings Plan better covers the steady-state API usage without locking into a specific instance family.
Detailed technical explanation
How to think about this question
Compute Savings Plans apply to any EC2 instance, including Fargate and Lambda, and automatically cover usage up to the committed hourly rate, with any excess billed at On-Demand rates. Spot Instances use spare AWS capacity and can be reclaimed with a 2-minute warning, but the transcoding fleet's checkpointing design ensures no data loss. The combination of a Savings Plan for the baseline and Spot for the variable workload maximizes cost efficiency without architectural changes.
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: 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, providing up to 66% savings over On-Demand in exchange for a 1- or 3-year commitment. It applies to any EC2 instance family within a Region, making it flexible and cost-effective for the baseline usage. Option C is correct because Spot Instances can be up to 90% cheaper than On-Demand and are ideal for fault-tolerant workloads like the transcoding fleet, which can resume from checkpoints if interrupted.
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: "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?
Read the scenario before looking for a memorised answer.
About these practice questions
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Same concept, more angles
1 more ways this is tested on SAA-C03
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. 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.
medium- A.Purchase an All Upfront Reserved Instance for the transcoding fleet only.
- ✓ B.Buy a Compute Savings Plan to cover the always-on API baseline usage.
- ✓ C.Run the transcoding fleet on Spot Instances because interrupted jobs can resume from checkpoints.
- D.Increase the API instance size so CPU utilization stays below 30 percent.
- E.Move the API tier to Dedicated Hosts to improve isolation and lower spend.
Why B: 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.
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Last reviewed: Jun 11, 2026
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