Question 291 of 1,546
Cost and Performance OptimizationmediumMultiple ChoiceObjective-mapped

SOA-C02 Savings Plans Practice Question

This SOA-C02 practice question tests your understanding of cost and performance optimization. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. A key principle to apply: savings Plans. 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 is running a web application on EC2 instances behind an Application Load Balancer. The application experiences variable traffic patterns. The SysOps team wants to optimize costs without impacting performance. Which EC2 purchasing option should the team use for the instances?

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

Savings Plans

Savings Plans offer flexible pricing across EC2 instance families and regions, providing significant discounts (up to 72%) compared to On-Demand. With variable traffic, they allow cost savings without requiring a specific instance configuration or long-term commitment to a particular instance type. The plan applies to any EC2 usage, making it ideal for workloads with unpredictable or changing patterns, while performance remains unaffected since instances still run as On-Demand.

Key principle: Savings Plans

Answer analysis

Option-by-option breakdown

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

  • Savings Plans

    Why this is correct

    Savings Plans provide a discount over On-Demand with flexible usage across instance families and regions, making them a cost-effective choice for variable traffic patterns without commitment to specific instances.

    Related concept

    Savings Plans

  • Spot Instances

    Why it's wrong here

    Spot Instances offer large discounts but can be interrupted at any time, which would impact performance for a production web application behind a load balancer.

  • On-Demand Instances

    Why it's wrong here

    On-Demand Instances are fully flexible and support variable traffic, but they are the most expensive option and do not optimize costs as well as Savings Plans for long-term usage.

  • Reserved Instances

    Why it's wrong here

    Reserved Instances require a 1- or 3-year commitment to a specific instance family in a region, which is less flexible for variable traffic patterns compared to Savings Plans.

Common exam traps

Common exam trap: answer the scenario, not the keyword

Candidates may choose On-Demand for its flexibility without recognizing that Savings Plans offer similar flexibility with significant discounts, making them a better cost optimization choice for variable workloads that require consistent performance.

Detailed technical explanation

How to think about this question

Under the hood, On-Demand Instances leverage AWS's shared infrastructure with no upfront payment, and billing is per second (for Linux instances) with a minimum of 60 seconds, making them ideal for elastic workloads. In a real-world scenario, a web application with unpredictable spikes (e.g., flash sales) benefits from On-Demand because Auto Scaling can launch instances in minutes, and the ALB distributes traffic without the risk of Spot termination disrupting user sessions. This contrasts with Savings Plans, which apply a blended rate across instance families but still require a baseline commitment that can be wasteful for variable traffic.

KKey Concepts to Remember

  • Savings Plans
  • On-Demand Instances
  • Cost Optimization

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

Savings Plans

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 savings Plans, then practise related SOA-C02 questions on the same topic to reinforce the concept.

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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 — Savings Plans.

What is the correct answer to this question?

The correct answer is: Savings Plans — Savings Plans offer flexible pricing across EC2 instance families and regions, providing significant discounts (up to 72%) compared to On-Demand. With variable traffic, they allow cost savings without requiring a specific instance configuration or long-term commitment to a particular instance type. The plan applies to any EC2 usage, making it ideal for workloads with unpredictable or changing patterns, while performance remains unaffected since instances still run as On-Demand.

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

Review savings Plans, then practise related SOA-C02 questions on the same topic to reinforce the concept.

What is the key concept behind this question?

Savings Plans

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Last reviewed: Jul 4, 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.