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 apply a one- or three-year commitment to steady-state capacity, cutting hourly rates substantially versus on-demand. This satisfies the cost optimisation requirement by discounting the predictable baseline load while on-demand or spot covers peaks.
- ✓
Implement storage lifecycle policies to move old data to cheaper storage tiers
Why this is correct
Lifecycle policies automatically transition aged objects from hot tiers to infrequent-access or archive storage, directly cutting the per-gigabyte cost of retained data. This satisfies the stem's cost optimisation goal by matching storage class to access frequency rather than paying premium rates indefinitely.
- ✗
Use all SSD storage for all data to maximize performance
Why it's wrong here
Provisioning SSD for all data raises storage cost per gigabyte, including cold or infrequently accessed volumes that gain nothing from low latency. SSD suits high-IOPS databases and hot tiers, but tiering to cheaper magnetic or infrequent-access storage reduces spend for archival data.
- ✓
Rightsize instances based on actual utilization metrics
Why this is correct
Rightsizing matches instance and database capacity to measured utilisation, eliminating spend on idle vCPU and memory. It satisfies the stem's production EC2 and RDS constraint by resizing both compute and database tiers from CloudWatch metrics, rather than committing to longer terms or purchasing models that only discount existing overprovisioning.
- ✗
Run all instances 24/7 to ensure availability
Why it's wrong here
Running every instance continuously bills full on-demand hours regardless of demand, so idle capacity is paid for without benefit. Continuous operation suits workloads needing constant availability, but production fleets with variable load should use auto-scaling, scheduling, or Savings Plans instead.
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