SOA-C02 Cost and Performance Optimization Practice Question
A company runs a web application on EC2 instances behind an Application Load Balancer. The application experiences variable traffic patterns. The operations team notices that during low traffic periods, there are still a large number of running instances, leading to higher costs. What should the team do to reduce costs while maintaining performance?
⚠ Common exam trap
SOA-C02 often tests the difference between cost-reduction mechanisms — candidates may pick Reserved Instances for cost savings, but RIs do not address dynamic over-provisioning during low-traffic periods.
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
✓
Implement a target tracking scaling policy based on average CPU utilization.
The problem is over-provisioning during low-traffic periods, so the solution must automatically reduce capacity when demand drops while preserving the ability to scale up. A target tracking scaling policy based on average CPU utilization continuously adjusts the desired instance count to maintain the target, scaling in during off-peak and out during peaks. This is the standard, hands-off cost-optimization approach for variable workloads.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Replace the existing instances with larger instance types to handle peak load.
Why it's wrong here
Replacing the existing instances with larger instance types (vertical scaling) only increases the maximum compute capacity per instance; it does not automatically reduce capacity when demand drops, so you still pay for the larger instances during low-traffic periods. Additionally, you may hit instance size limits within the family, and a single large instance also creates a larger blast radius if it fails. This approach ignores the dynamic nature of web traffic and can significantly increase costs without improving operational agility.
- ✓
Implement a target tracking scaling policy based on average CPU utilization.
Why this is correct
A target tracking scaling policy is the correct approach because it lets Amazon EC2 Auto Scaling automatically adjust the desired instance count to keep average CPU utilization near a predefined target value (e.g., 50%). CloudWatch alarms monitor the metric, and the policy scale out or scale in by incrementing or decrementing capacity based on the measured deviation from the target. This automated, reactive method handles peak load efficiently and reduces instances during low traffic, directly reducing costs without manual intervention.
- ✗
Manually scale down the number of instances during off-peak hours.
Why it's wrong here
Manually scaling down instances during off-peak hours is operationally brittle because it depends on a human to remember and execute the change at the right time, which is error-prone and does not respond to unpredictable traffic spikes. Manual processes also add operational overhead and can conflict with other changes, such as instance refresh or deployments, leading to downtime or insufficient capacity. A better solution is to automate scaling based on actual demand signals, such as CPU utilization or request count, rather than relying on a fixed schedule.
- ✗
Purchase Reserved Instances for the baseline capacity.
Why it's wrong here
Purchasing Reserved Instances for baseline capacity provides a significant hourly cost discount, but it is a billing commitment, not a scaling mechanism. Reserved Instances do not automatically adjust the number of running instances; you still need Auto Scaling to launch and terminate instances in response to load. While RIs are a smart financial tool for predictable, steady-state capacity, they do not solve the peak load issue by themselves—you still need a dynamic scaling policy to handle fluctuating traffic while maximizing RI coverage.
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JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official Amazon Web Services exam blueprint
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.