- A
Provision a fixed number of EC2 instances that can handle peak load at all times.
Why wrong: Fixed provisioning leads to wasted resources during low traffic.
- B
Use EC2 Auto Scaling with a scheduled scaling policy that adds instances during business hours.
Why wrong: Scheduled scaling does not respond to variable traffic outside of scheduled times.
- C
Use EC2 Auto Scaling with a target tracking scaling policy based on average CPU utilization.
Target tracking automatically adjusts capacity to maintain a target metric, scaling cost-effectively.
- D
Use EC2 Auto Scaling with a manual scaling plan that requires an administrator to adjust the desired capacity.
Why wrong: Manual scaling is not automated and can lead to over- or under-provisioning.
Cost-Effective Scaling — Target Tracking Policy Based on CPU Utilization
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 runs a web application on EC2 instances behind an Application Load Balancer. The application experiences variable traffic patterns. What is the MOST cost-effective way to ensure the application scales based on demand?
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
Use EC2 Auto Scaling with a target tracking scaling policy based on average CPU utilization.
Option C is correct because a target tracking scaling policy based on average CPU utilization automatically adjusts the number of EC2 instances to maintain a target metric (e.g., 50% CPU), scaling out during high demand and scaling in during low demand. This is the most cost-effective approach for variable traffic patterns as it eliminates over-provisioning and manual intervention, directly aligning capacity with real-time demand.
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.
- ✗
Provision a fixed number of EC2 instances that can handle peak load at all times.
Why it's wrong here
Fixed provisioning leads to wasted resources during low traffic.
- ✗
Use EC2 Auto Scaling with a scheduled scaling policy that adds instances during business hours.
Why it's wrong here
Scheduled scaling does not respond to variable traffic outside of scheduled times.
- ✓
Use EC2 Auto Scaling with a target tracking scaling policy based on average CPU utilization.
Why this is correct
Target tracking automatically adjusts capacity to maintain a target metric, scaling cost-effectively.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Use EC2 Auto Scaling with a manual scaling plan that requires an administrator to adjust the desired capacity.
Why it's wrong here
Manual scaling is not automated and can lead to over- or under-provisioning.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often choose scheduled scaling (Option B) thinking it covers all variable traffic, but the exam tests the distinction that scheduled scaling only works for predictable patterns, not truly variable demand, making target tracking the correct choice for cost-effective dynamic scaling.
Detailed technical explanation
How to think about this question
Target tracking scaling policies use a predefined metric (e.g., average CPU utilization) and a target value (e.g., 50%), leveraging the AWS Auto Scaling cooldown mechanism to avoid rapid fluctuations. Under the hood, the policy calculates the required number of instances based on the metric's deviation from the target, using a proportional-integral-derivative (PID) controller-like algorithm. In a real-world scenario, this ensures that a web application with sudden traffic spikes (e.g., flash sales) scales out quickly while scaling in gradually to avoid thrashing, optimizing cost without sacrificing performance.
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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Cost and Performance Optimization — study guide chapter
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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: Use EC2 Auto Scaling with a target tracking scaling policy based on average CPU utilization. — Option C is correct because a target tracking scaling policy based on average CPU utilization automatically adjusts the number of EC2 instances to maintain a target metric (e.g., 50% CPU), scaling out during high demand and scaling in during low demand. This is the most cost-effective approach for variable traffic patterns as it eliminates over-provisioning and manual intervention, directly aligning capacity with real-time demand.
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.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
About these practice questions
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
Same concept, more angles
2 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 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?
medium- A.Replace the existing instances with larger instance types to handle peak load.
- ✓ B.Implement a target tracking scaling policy based on average CPU utilization.
- C.Manually scale down the number of instances during off-peak hours.
- D.Purchase Reserved Instances for the baseline capacity.
Why B: Implementing a target tracking scaling policy based on average CPU utilization allows the Auto Scaling group to automatically scale the number of EC2 instances in response to demand. This ensures that during low traffic periods, the group reduces instance count to minimize costs, while during high traffic it adds instances to maintain performance. Option A is incorrect because using larger instance types would not reduce the number of running instances during low traffic and could increase costs. Option C is incorrect because manual scaling is not automated and may not respond quickly to traffic changes. Option D is incorrect because Reserved Instances provide a discount but do not address the issue of over-provisioning during low traffic; they lock in capacity that may still be unused.
Variation 2. A company runs a web application on EC2 instances behind an Application Load Balancer (ALB). The application experiences variable traffic with occasional spikes. The SysOps administrator wants to optimize costs while ensuring that the application can handle spikes without performance degradation. The current setup uses a fixed number of instances. Which action should the administrator take?
medium- A.Purchase Reserved Instances for the current number of instances to reduce hourly cost.
- ✓ B.Implement an Auto Scaling group with a target tracking scaling policy based on ALB request count per target.
- C.Replace on-demand instances with Spot Instances for all traffic.
- D.Increase the instance size to a compute-optimized type to handle spikes.
Why B: Option B is correct because implementing an Auto Scaling group with a target tracking scaling policy based on ALB request count per target automatically adjusts the number of EC2 instances to match traffic patterns. During spikes, it adds instances to handle the load without performance degradation, and during low traffic, it reduces instances to optimize costs. Option A (Reserved Instances) lowers hourly cost but locks in a fixed capacity, which cannot handle variable traffic efficiently. Option C (Spot Instances) can be interrupted, risking performance degradation during spikes. Option D (increasing instance size) may handle spikes but is expensive and does not dynamically scale down.
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Last reviewed: Jul 4, 2026
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