- A
Set CloudWatch Logs retention to 90 days.
Applying a retention policy prevents CloudWatch Logs from storing data indefinitely. Because the auditors only require 90 days, this removes unnecessary log-storage charges beyond the compliance window without losing required history.
- B
Use standard EC2 monitoring instead of detailed monitoring where 1-minute metrics are unnecessary.
Standard EC2 monitoring publishes basic instance metrics at 5-minute intervals and is included at no extra charge, whereas detailed monitoring adds cost for 1-minute metrics. Since operations only needs 5-minute metrics, standard monitoring satisfies the requirement at lower cost.
- C
Export older logs to Amazon S3 and use an S3 lifecycle policy for long-term archive.
Moving older logs out of CloudWatch Logs reduces the premium cost of keeping large log volumes in a monitoring service. S3 with lifecycle transitions to cheaper storage classes is a common pattern for retaining historical logs economically after the active retention period.
- D
Keep CloudWatch Logs retention set to Never Expire.
Why wrong: Never Expire leaves every log event in CloudWatch Logs indefinitely, which increases recurring storage charges as the log volume grows. That directly conflicts with the stated 90-day retention requirement.
- E
Enable high-resolution custom metrics for every request.
Why wrong: High-resolution metrics increase monitoring cost and are intended for use cases that require sub-minute observability. They are unnecessary when 5-minute instance metrics satisfy the operational need.
Quick Answer
The answer is to set CloudWatch Logs retention to 90 days, export older logs to S3 with a lifecycle policy, and change EC2 detailed monitoring to basic 5-minute monitoring. This directly reduces CloudWatch monitoring costs by eliminating unnecessary data storage and high-frequency metric charges. CloudWatch Logs retention policies automatically delete data after the specified period, while S3 lifecycle rules transition archived logs to cheaper storage tiers like Glacier, meeting the 90-day audit requirement without ongoing CloudWatch fees. For EC2, detailed monitoring (1-minute metrics) costs more than basic monitoring (5-minute metrics), so switching to basic monitoring satisfies the operations team’s needs at a lower cost. On the SAA-C03 exam, this tests your ability to balance cost optimization with compliance requirements—a common trap is keeping detailed monitoring enabled “just in case” or forgetting that logs in CloudWatch incur storage costs even if not accessed. Memory tip: “Retain, Export, Reduce” — set retention, export to S3, and reduce metric frequency.
SAA-C03 Design Cost-Optimized Architectures Practice Question
This SAA-C03 practice question tests your understanding of design cost-optimized architectures. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. 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 development team stores application logs in CloudWatch Logs and has enabled detailed EC2 monitoring on every instance. Auditors only require 90 days of logs, and operations only needs 5-minute instance metrics. Which three changes would most directly reduce recurring monitoring costs while still meeting those requirements? Select three.
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 CloudWatch Logs retention to 90 days.
Option A is correct because setting CloudWatch Logs retention to 90 days ensures logs are automatically deleted after the required period, eliminating storage costs for older data. By default, logs never expire, which would incur ongoing charges for data beyond the audit requirement. This directly reduces recurring costs by limiting the log data stored.
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.
- ✓
Set CloudWatch Logs retention to 90 days.
Why this is correct
Applying a retention policy prevents CloudWatch Logs from storing data indefinitely. Because the auditors only require 90 days, this removes unnecessary log-storage charges beyond the compliance window without losing required history.
Related concept
Read the scenario before looking for a memorised answer.
- ✓
Use standard EC2 monitoring instead of detailed monitoring where 1-minute metrics are unnecessary.
Why this is correct
Standard EC2 monitoring publishes basic instance metrics at 5-minute intervals and is included at no extra charge, whereas detailed monitoring adds cost for 1-minute metrics. Since operations only needs 5-minute metrics, standard monitoring satisfies the requirement at lower cost.
Related concept
Read the scenario before looking for a memorised answer.
- ✓
Export older logs to Amazon S3 and use an S3 lifecycle policy for long-term archive.
Why this is correct
Moving older logs out of CloudWatch Logs reduces the premium cost of keeping large log volumes in a monitoring service. S3 with lifecycle transitions to cheaper storage classes is a common pattern for retaining historical logs economically after the active retention period.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Keep CloudWatch Logs retention set to Never Expire.
Why it's wrong here
Never Expire leaves every log event in CloudWatch Logs indefinitely, which increases recurring storage charges as the log volume grows. That directly conflicts with the stated 90-day retention requirement.
- ✗
Enable high-resolution custom metrics for every request.
Why it's wrong here
High-resolution metrics increase monitoring cost and are intended for use cases that require sub-minute observability. They are unnecessary when 5-minute instance metrics satisfy the operational need.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates might think 'Never Expire' is safe for compliance, but it actually increases costs by retaining data indefinitely, while the requirement is only 90 days; also, high-resolution metrics sound useful but are an unnecessary expense when only 5-minute metrics are needed.
Detailed technical explanation
How to think about this question
CloudWatch Logs charges based on data ingested and stored, with per-GB rates for storage; setting a retention policy (e.g., 90 days) triggers automatic deletion of log groups after that period, avoiding long-term storage fees. Standard EC2 monitoring provides metrics at 5-minute intervals at no additional cost, while detailed monitoring (1-minute) incurs per-instance charges. Exporting logs to S3 and applying lifecycle policies (e.g., transition to Glacier after 90 days) can further reduce costs by leveraging cheaper storage tiers for archival, though the question asks for changes that directly reduce recurring monitoring costs, and S3 export with lifecycle is a valid cost-saving measure for log data.
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
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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 CloudWatch Logs retention to 90 days. — Option A is correct because setting CloudWatch Logs retention to 90 days ensures logs are automatically deleted after the required period, eliminating storage costs for older data. By default, logs never expire, which would incur ongoing charges for data beyond the audit requirement. This directly reduces recurring costs by limiting the log data stored.
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.
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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