Question 943 of 1,546
Cost and Performance OptimizationmediumMultiple ChoiceObjective-mapped

Quick Answer

The answer is to configure the Auto Scaling group with a mixed instances policy that combines Spot Instances for a portion of the capacity with On-Demand Instances for the remainder. This approach directly reduces cost because Spot Instances leverage unused AWS capacity at steep discounts—often 60-90% off On-Demand pricing—while the On-Demand portion ensures baseline availability during spikes or when Spot capacity is reclaimed. On the AWS Certified SysOps Administrator Associate SOA-C02 exam, this scenario tests your understanding of balancing cost and reliability for variable, unpredictable traffic; a common trap is choosing Reserved Instances, which lock in cost for steady-state usage but offer no flexibility for spikes, or selecting target tracking scaling, which improves responsiveness but does not lower instance costs. Remember the key trade-off: Spot for savings, On-Demand for stability. A useful memory tip is “Spot the savings, keep the On-Demand anchor”—the mixed policy lets you ride the cost wave without crashing on availability.

SOA-C02 Cost and Performance Optimization Practice Question

This SOA-C02 practice question tests your understanding of cost and performance optimization. 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 company hosts a web application on EC2 instances behind an Application Load Balancer (ALB). The application experiences variable traffic patterns with occasional spikes. The current setup uses On-Demand instances in an Auto Scaling group with a simple scaling policy based on average CPU utilization. The team wants to optimize cost while ensuring that the application can handle spikes in traffic. What should the team do to reduce cost?

Question 1mediummultiple choice
Read the full NAT/PAT explanation →

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

Configure the Auto Scaling group to use a mixed instances policy with Spot Instances for a portion of the capacity and On-Demand for the remainder.

Option B is correct because Spot Instances are cost-effective and can be used alongside On-Demand for variable workloads; the Auto Scaling group can use a mixed instances policy to maintain availability while reducing cost. Option A (reserved instances) locks in cost for steady usage but does not help with spikes. Option C (scheduled scaling) is not suitable for unpredictable traffic. Option D (target tracking) improves scaling but does not directly reduce cost; it uses On-Demand instances which are more expensive.

Key principle: NAT direction and interface roles matter as much as the IP address mapping. Inside/outside designation controls which traffic is translated.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Switch to a target tracking scaling policy based on request count per target.

    Why it's wrong here

    Target tracking improves responsiveness but does not inherently reduce cost; instances remain On-Demand.

  • Implement scheduled scaling to add capacity during known peak hours.

    Why it's wrong here

    Scheduled scaling works for predictable patterns, but the traffic is variable and unpredictable.

  • Configure the Auto Scaling group to use a mixed instances policy with Spot Instances for a portion of the capacity and On-Demand for the remainder.

    Why this is correct

    Spot Instances can reduce costs significantly while maintaining availability through On-Demand fallback.

    Related concept

    Static NAT maps one inside address to one outside address.

  • Purchase Reserved Instances for the minimum expected capacity to get a discount.

    Why it's wrong here

    Reserved Instances reduce cost for baseline capacity, but do not address spike handling cost-effectively.

Common exam traps

Common exam trap: NAT rules depend on direction and matching traffic

NAT is not only about the public address. The inside/outside interface roles and the ACL or rule that matches traffic are just as important.

Detailed technical explanation

How to think about this question

NAT questions usually test address translation, overload/PAT behaviour, static mappings and whether the right traffic is being translated. Read the interface direction and address terms carefully.

KKey Concepts to Remember

  • Static NAT maps one inside address to one outside address.
  • PAT allows many inside hosts to share one public address using ports.
  • Inside local and inside global describe the private and translated addresses.
  • NAT ACLs identify traffic for translation, not always security filtering.

TExam Day Tips

  • Identify inside and outside interfaces first.
  • Check whether the scenario needs static NAT, dynamic NAT or PAT.
  • Do not confuse NAT matching ACLs with normal packet-filtering intent.

Key takeaway

NAT direction and interface roles matter as much as the IP address mapping. Inside/outside designation controls which traffic is translated.

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.

Review the four NAT address types (inside local, inside global, outside local, outside global), PAT port overload, and static vs dynamic NAT use cases. Then practise related SOA-C02 NAT questions on configuration and troubleshooting.

Related practice questions

Related SOA-C02 practice-question pages

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FAQ

Questions learners often ask

What does this SOA-C02 question test?

Cost and Performance Optimization — This question tests Cost and Performance Optimization — Static NAT maps one inside address to one outside address..

What is the correct answer to this question?

The correct answer is: Configure the Auto Scaling group to use a mixed instances policy with Spot Instances for a portion of the capacity and On-Demand for the remainder. — Option B is correct because Spot Instances are cost-effective and can be used alongside On-Demand for variable workloads; the Auto Scaling group can use a mixed instances policy to maintain availability while reducing cost. Option A (reserved instances) locks in cost for steady usage but does not help with spikes. Option C (scheduled scaling) is not suitable for unpredictable traffic. Option D (target tracking) improves scaling but does not directly reduce cost; it uses On-Demand instances which are more expensive.

What should I do if I get this SOA-C02 question wrong?

Review the four NAT address types (inside local, inside global, outside local, outside global), PAT port overload, and static vs dynamic NAT use cases. Then practise related SOA-C02 NAT questions on configuration and troubleshooting.

What is the key concept behind this question?

Static NAT maps one inside address to one outside address.

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Same concept, more angles

1 more ways this is tested on SOA-C02

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 company runs a critical web application on EC2 instances behind an ALB. The application experiences unpredictable traffic spikes. The SysOps administrator wants to ensure that the application can handle spikes without performance degradation while minimizing costs. Which TWO actions should the administrator take?

hard
  • A.Use a mix of On-Demand and Spot Instances in the Auto Scaling group.
  • B.Use Amazon DynamoDB auto scaling to handle the spikes.
  • C.Use scheduled scaling to add instances during expected peak hours.
  • D.Use a target tracking scaling policy based on CPU utilization.
  • E.Use larger EC2 instance types to handle spikes.

Why A: Option A is correct because Spot Instances can reduce costs if the application can handle interruptions. Option D is correct because target tracking scaling adjusts capacity based on load. Option B is wrong because DynamoDB auto scaling is not relevant for EC2. Option C is wrong because scheduled scaling cannot handle unpredictable spikes. Option E is wrong because increasing instance size may not be as cost-effective as scaling out.

Last reviewed: Jun 20, 2026

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This SOA-C02 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 SOA-C02 exam.