Design Cost-Optimized Architectures
Four cost levers: commitment, interruption, tiering, right-sizing
AWS billing has four main levers, and most cost questions are really asking which one fits the workload. There's capacity commitment (Reserved Instances, Savings Plans, Reserved Nodes) for steady usage; interruption tolerance (Spot) for fault-tolerant batch; access-frequency tiering (the S3, EFS, and FSx storage classes) for data that cools off over time; and right-sizing (Compute Optimizer, Trusted Advisor) for resources that are over-provisioned. What the exam is really testing is whether you can pick the right lever from the workload's predictability and tolerance — not whether you can recite discount percentages.
A stronger constraint outranks cost
Cost optimization is only the goal when nothing else outranks it. If the scenario carries a hard requirement — availability, latency, durability, or compliance — the correct answer satisfies that first and then optimizes cost within it. The cheapest option that violates the stated constraint is always a distractor.
Remove waste before buying discounts
The cheapest resource is the one you switch off. Right-size over-provisioned instances and volumes, delete unattached EBS volumes and idle load balancers, and schedule non-production environments to shut down outside business hours — then, and only then, layer commitment discounts on the steady-state baseline that's left. Commit before you clean up and you've locked in your waste for one to three years.
The four cost levers at a glance
| Lever | Best for workload type | Max discount vs On-Demand | Commitment | AWS service examples |
|---|---|---|---|---|
| Capacity commitment | Predictable, steady-state, runs continuously | Up to 72% | 1 or 3 years | EC2 RIs, Compute Savings Plans, RDS RIs, ElastiCache Reserved Nodes, Redshift RIs |
| Interruption tolerance | Stateless, fault-tolerant, asynchronous batch | Up to 90% | None | EC2 Spot, Spot Fleet, Fargate Spot, Spot in EMR / Batch / EKS |
| Access-frequency tiering | Data whose access frequency drops over time | Up to 95% (Deep Archive) | Lifecycle rule, not financial | S3 storage classes, EFS IA/Archive, FSx tiers, EBS snapshots → Archive |
| Right-sizing | Any workload with usage history | Variable (typically 20-40%) | None | Compute Optimizer, Trusted Advisor, Cost Explorer rightsizing |