AWS AWS Cost Management

Question 1

What is AWS Cost Explorer used for?

Accepted Answer

Visualizing, understanding, and managing AWS spending patterns over time

Answer

AWS Cost Explorer provides interactive graphs and reports to visualize spending patterns, identify cost trends, forecast future costs, and discover opportunities for savings across AWS services.

Question 2

What are AWS Savings Plans?

Accepted Answer

Flexible pricing models offering significant discounts in exchange for a consistent usage commitment

Answer

AWS Savings Plans offer up to 72% savings compared to On-Demand pricing in exchange for a commitment to a consistent amount of usage ($/hour) for 1 or 3 years, applicable to EC2, Lambda, and Fargate.

Question 3

What is the difference between Reserved Instances and Spot Instances?

Accepted Answer

Reserved provide discounts for committed usage; Spot offer deep discounts on unused capacity that can be interrupted

Answer

Reserved Instances provide up to 75% discount for 1-3 year commitments, while Spot Instances offer up to 90% discount on unused EC2 capacity but can be interrupted with 2 minutes notice when AWS needs the capacity.

Question 4

What is AWS Budgets and how does it help with cost management?

Accepted Answer

A service to set custom spending thresholds and receive alerts when costs exceed or are forecasted to exceed budgets

Answer

AWS Budgets allows you to set custom cost, usage, and reservation budgets with configurable alerts that notify you via email or SNS when actual or forecasted spending approaches or exceeds defined thresholds.

Question 5

What is the AWS Well-Architected Framework's cost optimization pillar?

Accepted Answer

A set of best practices for running systems that deliver business value at the lowest cost

Answer

The cost optimization pillar focuses on avoiding unnecessary costs, understanding spending, selecting the right resources, matching supply with demand, and using managed services to reduce total cost of ownership.

AWS Practice Test

AWS Practice Test

AWS AWS Cost Management