- A
Use VPC endpoints to connect to S3 and DynamoDB.
Why wrong: VPC endpoints reduce data transfer for AWS services, not internet traffic.
- B
Use Amazon CloudFront as a content delivery network (CDN).
CloudFront reduces data transfer from EC2 by serving cached content from edge locations.
- C
Move the EC2 instances to a different AWS Region with lower data transfer rates.
Why wrong: Data transfer rates are similar across regions.
- D
Use a NAT Gateway to route traffic through a single IP.
Why wrong: NAT Gateway does not reduce data transfer costs; it adds cost.
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 SysOps administrator is reviewing the monthly AWS bill and notices a significant cost for data transfer from EC2 to the internet. The EC2 instances are in a VPC and serve content to users. Which action would MOST effectively reduce data transfer costs?
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 Amazon CloudFront as a content delivery network (CDN).
The correct answer is B: Use Amazon CloudFront as a content delivery network (CDN). CloudFront caches content at edge locations, which reduces the amount of data transferred from the EC2 origin to the internet, lowering data transfer costs. Option A is incorrect because VPC endpoints provide private connectivity to AWS services and do not reduce data transfer costs to the internet. Option C is incorrect because moving to a different AWS Region does not reduce data transfer costs and may introduce higher latency. Option D is incorrect because a NAT Gateway adds additional cost for each gigabyte processed and is not a solution for reducing outbound data transfer costs; it is used for internet access from private subnets.
Key principle: Count usable hosts — not total addresses — and remember that the network and broadcast addresses are not available to hosts in standard IPv4 subnets.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Use VPC endpoints to connect to S3 and DynamoDB.
Why it's wrong here
VPC endpoints reduce data transfer for AWS services, not internet traffic.
- ✓
Use Amazon CloudFront as a content delivery network (CDN).
Why this is correct
CloudFront reduces data transfer from EC2 by serving cached content from edge locations.
Related concept
CIDR notation defines the prefix length.
- ✗
Move the EC2 instances to a different AWS Region with lower data transfer rates.
Why it's wrong here
Data transfer rates are similar across regions.
- ✗
Use a NAT Gateway to route traffic through a single IP.
Common exam traps
Common exam trap: usable hosts are not the same as total addresses
Subnetting questions often tempt you into counting all addresses. In normal IPv4 subnets, the network and broadcast addresses are not usable host addresses.
Trap categories for this question
Similar concept trap
Data transfer rates are similar across regions.
Detailed technical explanation
How to think about this question
Subnetting questions test whether you can identify the network, broadcast address, usable range, mask and correct subnet. Slow down enough to calculate the block size correctly.
KKey Concepts to Remember
- CIDR notation defines the prefix length.
- Block size helps identify subnet boundaries.
- Network and broadcast addresses are not usable hosts in normal IPv4 subnets.
- The required host count determines the smallest suitable subnet.
TExam Day Tips
- Write the block size before choosing the subnet.
- Check whether the question asks for hosts, subnets or a specific address range.
- Do not confuse /24, /25, /26 and /27 host counts.
Key takeaway
Count usable hosts — not total addresses — and remember that the network and broadcast addresses are not available to hosts in standard IPv4 subnets.
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.
Visual reference
What to study next
Got this wrong? Here's your next step.
Review block sizes, usable host formulas (2^n − 2), and how to find network and broadcast addresses for /24 through /30. Then practise related SOA-C02 subnetting questions on CIDR, address ranges, and subnet selection.
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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 — CIDR notation defines the prefix length..
What is the correct answer to this question?
The correct answer is: Use Amazon CloudFront as a content delivery network (CDN). — The correct answer is B: Use Amazon CloudFront as a content delivery network (CDN). CloudFront caches content at edge locations, which reduces the amount of data transferred from the EC2 origin to the internet, lowering data transfer costs. Option A is incorrect because VPC endpoints provide private connectivity to AWS services and do not reduce data transfer costs to the internet. Option C is incorrect because moving to a different AWS Region does not reduce data transfer costs and may introduce higher latency. Option D is incorrect because a NAT Gateway adds additional cost for each gigabyte processed and is not a solution for reducing outbound data transfer costs; it is used for internet access from private subnets.
What should I do if I get this SOA-C02 question wrong?
Review block sizes, usable host formulas (2^n − 2), and how to find network and broadcast addresses for /24 through /30. Then practise related SOA-C02 subnetting questions on CIDR, address ranges, and subnet selection.
What is the key concept behind this question?
CIDR notation defines the prefix length.
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Last reviewed: Jun 20, 2026
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