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CLF-C02 · Domain 4: Billing, Pricing, and Support · 12% of the exam

Task 4.1: Compare AWS pricing models.

On-Demand, Reserved Instances, Savings Plans, Spot, Dedicated options and Capacity Reservations, plus how data transfer and storage tiers are priced.

Study it

  • Purchase options: On-Demand, Reserved Instances, Spot, Savings Plans, Dedicated

    Lesson: AWS Cost Levers

  • Data transfer and storage pricing

    Lesson coming

Sample questions

Try each one before opening the answer. Every option is explained, with the AWS documentation page that proves it.

Question 1 · choose 1

A research team runs data-analysis jobs overnight. The jobs can be stopped and restarted later without losing work, and the team wants the lowest compute cost. Which Amazon EC2 purchasing option fits?

  1. AOn-Demand Instances
  2. BReserved Instances with a three-year term
  3. CSpot Instances
  4. DOn-Demand Capacity Reservations
Show the answer and why
  • AOn-Demand Instances

    Incorrect

    On-Demand has a static hourly price. Spare capacity is sold for less than that price, and these jobs can use it.

  • BReserved Instances with a three-year term

    Incorrect

    Reserved Instances are a discount for a one- or three-year commitment to a matching instance, billed whether or not you use it — a poor fit for jobs that run only some of the time.

  • CSpot Instances

    Correct

    Spot Instances use spare EC2 capacity for less than the On-Demand price. They suit flexible work that can be interrupted, such as data analysis and batch jobs.

  • DOn-Demand Capacity Reservations

    Incorrect

    A Capacity Reservation guarantees capacity in an Availability Zone but gives no billing discount of its own.

Interruptible, flexible work is exactly what spare capacity is sold for: the team trades a guarantee it does not need for a steep discount.

Question 2 · choose 2

A company runs a database server on Amazon EC2 24 hours a day and will keep it for at least three years. The server must not be interrupted. Which options lower its compute cost compared with On-Demand pricing? (Choose TWO.)

  1. ASavings Plans
  2. BSpot Instances
  3. COn-Demand Capacity Reservations
  4. DReserved Instances
  5. EAWS Pricing Calculator
Show the answer and why
  • ASavings Plans

    Correct

    Savings Plans lower prices compared with On-Demand in exchange for a commitment to a consistent amount of usage, measured in dollars per hour, for one or three years.

  • BSpot Instances

    Incorrect

    Spot Instances are cheaper, but Amazon EC2 can interrupt them when it needs the capacity back — not acceptable for this server.

  • COn-Demand Capacity Reservations

    Incorrect

    Capacity Reservations reserve capacity in an Availability Zone but provide no billing discount.

  • DReserved Instances

    Correct

    Reserved Instances give a significant discount compared with On-Demand for a one- or three-year commitment to an instance configuration.

  • EAWS Pricing Calculator

    Incorrect

    The Pricing Calculator estimates costs for planning. It does not change what you are billed.

Steady, always-on usage that will last for years is what commitment discounts are for. Savings Plans are the more flexible of the two.

Question 3 · choose 1

A company wants to bring its existing server software licenses to Amazon EC2. The licenses are counted per physical core, so the company must be able to see how many sockets and physical cores the underlying server has. Which EC2 option meets this requirement?

  1. ADedicated Instances
  2. BDedicated Hosts
  3. CSpot Instances
  4. DSavings Plans
Show the answer and why
  • ADedicated Instances

    Incorrect

    Dedicated Instances run on hardware dedicated to one customer account, but they give no visibility of sockets, cores or host ID, and support bring your own license only partially.

  • BDedicated Hosts

    Correct

    A Dedicated Host is a physical server fully dedicated to you. It shows the number of sockets and physical cores and supports existing per-socket, per-core or per-VM licenses.

  • CSpot Instances

    Incorrect

    Spot Instances use spare EC2 capacity at a discount and can be interrupted. They give no control over, or visibility of, the physical server.

  • DSavings Plans

    Incorrect

    Savings Plans are a billing discount for a usage commitment. They do not change which hardware your instances run on.

Server-bound licensing is the classic reason for Dedicated Hosts: you get the physical server, and with it the core and socket counts your license terms ask for.

Question 4 · choose 1

A company is estimating the network part of its AWS bill. According to how AWS charges for data transfer, which of the following has no charge?

  1. AData sent from its EC2 instances out to the internet
  2. BData sent from one AWS Region to another
  3. CData sent into AWS from the internet
  4. DData sent between Availability Zones in the same Region
Show the answer and why
  • AData sent from its EC2 instances out to the internet

    Incorrect

    Data transfer from AWS to the internet is charged, and is usually the largest data transfer item on a bill.

  • BData sent from one AWS Region to another

    Incorrect

    Transfer between Regions is charged on the outbound side, at the source Region.

  • CData sent into AWS from the internet

    Correct

    There is no charge for data transfer from the internet to AWS.

  • DData sent between Availability Zones in the same Region

    Incorrect

    Transfer between Availability Zones in a Region is metered, in both directions for each resource, although some services do not charge for it.

As a rule of thumb, data coming in is free, and data going out — to the internet, to another Region, or across zones — is what costs money.

Question 5 · choose 1

A company wants a Reserved Instance discount for a three-year workload, but it expects to move to a different instance family and operating system during the term. Which option keeps that flexibility?

  1. AStandard Reserved Instances
  2. BConvertible Reserved Instances
  3. CSpot Instances
  4. DOn-Demand Capacity Reservations
Show the answer and why
  • AStandard Reserved Instances

    Incorrect

    Standard Reserved Instances give the biggest discount but can only be modified; they cannot be exchanged for different instance attributes.

  • BConvertible Reserved Instances

    Correct

    Convertible Reserved Instances give a lower discount than Standard ones, but can be exchanged for another Convertible Reserved Instance with different instance attributes.

  • CSpot Instances

    Incorrect

    Spot Instances are discounted spare capacity that can be interrupted — not a reservation for a three-year workload.

  • DOn-Demand Capacity Reservations

    Incorrect

    A Capacity Reservation reserves capacity in an Availability Zone but gives no billing discount on its own.

Within Reserved Instances, the trade-off is discount against flexibility: Standard saves more, Convertible lets you change course.

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