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CV0-004 Cloud Architecture and Design Practice Question

A cloud architect is reviewing costs for a production environment. The environment uses a mix of EC2 instances and RDS databases. Which THREE of the following are effective cost optimization strategies?

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 reserved instances for baseline capacity

Reserved instances provide discounts for steady-state usage. Storage lifecycle policies move data to cheaper tiers over time. Rightsizing ensures resources match workload requirements, reducing waste. Using all SSD even for cold data is expensive. Running instances 24/7 when not needed increases costs unnecessarily.

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 reserved instances for baseline capacity

    Why this is correct

    Reserved instances offer significant discounts for predictable workloads.

  • Implement storage lifecycle policies to move old data to cheaper storage tiers

    Why this is correct

    Lifecycle policies automate data migration to lower-cost storage.

  • Use all SSD storage for all data to maximize performance

    Why it's wrong here

    SSD is more expensive; not all data needs high performance.

  • Rightsize instances based on actual utilization metrics

    Why this is correct

    Rightsizing eliminates over-provisioning and reduces costs.

  • Run all instances 24/7 to ensure availability

    Why it's wrong here

    Running instances when not needed wastes money; use auto-scaling or scheduled shutdowns.

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