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Cost and Performance Optimization →mediumMultiple ChoiceObjective-mapped

SOA-C02 Cost and Performance Optimization Practice Question

This SOA-C02 practice question tests your understanding of cost and performance optimization. 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 company runs a production web application on a single Amazon EC2 instance. The application experiences a predictable and steady workload 24/7. The SysOps administrator wants to minimize compute costs for this instance while ensuring it remains available during the expected workload. Which EC2 purchasing option should the administrator use?

Clue words in this question

Noticing these words before you look at the options changes how you read each choice.

Clue: "minimum / minimize"
Why it matters: Asks for the least resource use — fewest addresses, smallest subnet, lowest overhead. Eliminate over-provisioned options even if they would technically work.

Question 1mediummultiple choice

Full question →

A
On-Demand Instances
Why wrong: On-Demand Instances provide flexibility with no upfront commitment, but they are the most expensive option for a steady workload. The administrator can reduce costs further by committing to a Reserved Instance.
B
Reserved Instances
Reserved Instances (RIs) provide a discounted hourly rate in exchange for a one- or three-year commitment. A standard RI is ideal for steady-state, predictable workloads, offering up to 72% savings compared to On-Demand.
C
Spot Instances
Why wrong: Spot Instances offer large discounts but can be terminated by AWS at any time if capacity is needed. This makes them unsuitable for a production workload that must run continuously without interruption.
D
Dedicated Hosts
Why wrong: Dedicated Hosts provide a physical server dedicated for your use, which is useful for licensing requirements, but they are more expensive than Reserved Instances and not a cost-optimization choice for most workloads.

Full breakdown with real-world context →

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

✓

Reserved Instances

Reserved Instances (RIs) are the most cost-effective option for a predictable, steady-state workload running 24/7. By committing to a 1- or 3-year term, you receive a significant discount (up to 72%) compared to On-Demand pricing, while still ensuring the instance remains available for the expected workload. This matches the requirement to minimize compute costs without sacrificing availability.

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.

✗
On-Demand Instances
Why it's wrong here
On-Demand Instances provide flexibility with no upfront commitment, but they are the most expensive option for a steady workload. The administrator can reduce costs further by committing to a Reserved Instance.
✓
Reserved Instances
Why this is correct
Reserved Instances (RIs) provide a discounted hourly rate in exchange for a one- or three-year commitment. A standard RI is ideal for steady-state, predictable workloads, offering up to 72% savings compared to On-Demand.
Clue confirmation
The clue word "minimum / minimize" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
✗
Spot Instances
Why it's wrong here
Spot Instances offer large discounts but can be terminated by AWS at any time if capacity is needed. This makes them unsuitable for a production workload that must run continuously without interruption.
✗
Dedicated Hosts
Why it's wrong here
Dedicated Hosts provide a physical server dedicated for your use, which is useful for licensing requirements, but they are more expensive than Reserved Instances and not a cost-optimization choice for most workloads.

Common exam traps

Common exam trap: answer the scenario, not the keyword

The trap here is that candidates often choose Spot Instances for cost savings, overlooking the critical requirement of 'remaining available during the expected workload' — Spot Instances can be interrupted at any time, making them unsuitable for production workloads that need consistent availability.

Detailed technical explanation

How to think about this question

Reserved Instances apply a billing discount to a specific instance family in a specific AWS Region or Availability Zone. The discount is applied automatically to matching instances, and you can sell unused reservations on the Reserved Instance Marketplace. For a predictable workload, Standard RIs offer the highest discount, while Convertible RIs provide flexibility to change instance attributes at a slightly lower discount.

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 SOA-C02 question test?

Cost and Performance Optimization — This question tests Cost and Performance Optimization — Read the scenario before looking for a memorised answer..

What is the correct answer to this question?

The correct answer is: Reserved Instances — Reserved Instances (RIs) are the most cost-effective option for a predictable, steady-state workload running 24/7. By committing to a 1- or 3-year term, you receive a significant discount (up to 72%) compared to On-Demand pricing, while still ensuring the instance remains available for the expected workload. This matches the requirement to minimize compute costs without sacrificing availability.

What should I do if I get this SOA-C02 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: "minimum / minimize". Asks for the least resource use — fewest addresses, smallest subnet, lowest overhead. Eliminate over-provisioned options even if they would technically work.

What is the key concept behind this question?

Read the scenario before looking for a memorised answer.

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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.