SAP-C02 Question 122
Select 4Your organization recently migrated multiple on-premises workloads to AWS and is experiencing a significant increase in monthly cloud costs. The CFO has asked you to implement strategies to optimize costs and improve visibility into cloud spending. Which approaches should you implement to address these concerns?
- A
Enable AWS Cost Explorer and create custom reports to analyze spending trends.
- B
Set up AWS Budgets with alerts to monitor and control spending thresholds.
- C
Launch all EC2 instances as On-Demand Instances to ensure flexibility.
- D
Implement Reserved Instances or Savings Plans for predictable workloads.
- E
Use Amazon S3 Glacier for long-term storage of infrequently accessed data.
Show answer and explanation
Correct answers: A, B, D, E
Explanation
To address cost optimization, you need strategies that both reduce unnecessary expenses and improve visibility into spending. AWS Cost Explorer and AWS Budgets help with cost visibility and monitoring, while Reserved Instances or Savings Plans optimize predictable workloads. Additionally, using cost-effective storage solutions like Amazon S3 Glacier for long-term data ensures cost efficiency. On-Demand Instances, while flexible, are more expensive and not suitable for predictable workloads, making them less optimal in this scenario.
- A. Correct.
Enabling AWS Cost Explorer provides detailed visibility into your spending patterns and trends, allowing you to identify areas for cost optimization. This is a key step in improving cost visibility.
- B. Correct.
AWS Budgets allow you to set thresholds and receive alerts when spending is nearing or exceeding limits, helping with cost control and visibility.
- C. Incorrect.
On-Demand Instances provide flexibility but are not cost-efficient for predictable workloads. Reserved Instances or Savings Plans are more suitable for optimizing costs in such cases.
- D. Correct.
Reserved Instances or Savings Plans provide significant cost savings for predictable workloads by committing to usage, making them a highly recommended strategy for cost optimization.
- E. Correct.
Amazon S3 Glacier is a cost-effective storage tier for long-term data archiving. This reduces storage costs for infrequently accessed data, contributing to cost optimization.