SAP-C02 Question 513
Select 4A company has a multi-account setup in AWS using AWS Organizations. They have noticed that their monthly costs are significantly higher than expected. As a solutions architect, you are tasked with identifying opportunities for cost optimization. Which of the following actions should you recommend to reduce costs effectively?
- A
Enable AWS Cost Explorer and activate resource-level cost allocation tags across all accounts.
- B
Purchase Reserved Instances or Savings Plans for consistently utilized EC2 instances.
- C
Migrate all workloads to on-demand EC2 instances for flexibility and avoid long-term commitments.
- D
Analyze Amazon S3 usage and implement lifecycle policies to transition infrequently accessed data to S3 Glacier or delete unused objects.
- E
Consolidate all accounts under AWS Organizations and enable consolidated billing.
Show answer and explanation
Correct answers: A, B, D, E
Explanation
Cost optimization in AWS involves leveraging tools and strategies to monitor, analyze, and reduce unnecessary expenses. Using AWS Cost Explorer and cost allocation tags helps in gaining visibility into spending patterns, which is the first step in optimization. Reserved Instances and Savings Plans are essential for predictable workloads, while analyzing S3 usage and applying lifecycle policies optimize storage costs. Consolidated billing under AWS Organizations allows for centralized cost management and volume discounts. Migrating workloads to on-demand instances is counterproductive, as it increases costs without leveraging AWS's cost optimization tools.
- A. Correct.
Enabling AWS Cost Explorer and activating cost allocation tags provide detailed visibility into resource usage and costs, which is crucial for identifying optimization opportunities.
- B. Correct.
Reserved Instances and Savings Plans offer significant discounts compared to on-demand pricing for predictable resource usage, making them a key cost optimization strategy.
- C. Incorrect.
Migrating all workloads to on-demand instances increases costs, as on-demand pricing is typically more expensive than alternatives such as Reserved Instances, Savings Plans, or Spot Instances.
- D. Correct.
Analyzing S3 usage and implementing lifecycle policies can significantly reduce storage costs by transitioning data to lower-cost storage tiers or deleting unused data.
- E. Correct.
Consolidating accounts under AWS Organizations and enabling consolidated billing allows for cost benefits such as volume discounts and centralized cost management, which are critical for cost optimization.