CLF-C02 Amazon Web Services AWS Certified Cloud Practitioner Free Practice Exam Questions (2026 Updated)

Amazon DynamoDB is a fully managed, serverless, key-value NoSQL database service that can deliver consistent, single-digit millisecond performance at any scale. DynamoDB can automatically scale throughput capacity to meet the demands of the database workload, without requiring any manual intervention. DynamoDB is ideal for NoSQL applications that need high performance, availability, and scalability. DynamoDB also offers features such as encryption at rest, point-in-time recovery, global tables, and in-memory caching. References: What is NoSQL?, Amazon DynamoDB, [AWS Cloud Practitioner Essentials: Module 4 - Databases in the Cloud]

AWS Budgets is a service that enables you to plan your service usage, service costs, and instance reservations. You can use AWS Budgets to create custom budgets that alert you when your costs or usage exceed (or are forecasted to exceed) your budgeted amount. You can also use AWS Budgets to monitor how close your usage and costs are to meeting your reservation purchases1

AWS Key Management Service (AWS KMS) is a managed service that enables you to easily encrypt your data. AWS KMS provides you with centralized control of the encryption keys used to protect your data. You can use AWS KMS to encrypt data in Amazon RDS and Amazon EBS volumes12

 AWS Budgets allows you to set custom budgets that alert you when your costs or usage exceed (or are forecasted to exceed) your budgeted amount. You can also use AWS Budgets to set reservation utilization or coverage targets and receive alerts when your utilization drops below the threshold you define. AWS Budgets provides you with a comprehensive view of your cost and usage, as well as your reservation utilization and coverage1.

 AWS Trusted Advisor is the AWS service or tool that the company should use to identify areas for optimization. According to the AWS Trusted Advisor User Guide, “AWS Trusted Advisor is an online tool that provides you real time guidance to help you provision your resources following AWS best practices. AWS Trusted Advisor checks help optimize your AWS infrastructure, increase security and performance, reduce your overall costs, and monitor service limits.” Amazon QuickSight, AWS Organizations, and AWS Budgets are not designed to provide optimization recommendations for the current AWS environment.

Cost optimization is the pillar of the AWS Well-Architected Framework that focuses on the return on investment of moving into the AWS Cloud. Cost optimization means that users can achieve the desired business outcomes at the lowest possible price point, while maintaining high performance and reliability. Cost optimization can be achieved by using various AWS features and best practices, such as pay-as-you-go pricing, right-sizing, elasticity, reserved instances, spot instances, cost allocation tags, cost and usage reports, and AWS Trusted Advisor. [AWS Well-Architected Framework] AWS Certified Cloud Practitioner - aws.amazon.com

 The correct answers are B and E because AWS Online Tech Talks and AWS Classroom Training are options that AWS makes available for customers who want to learn about security in the cloud in an instructor-led setting. AWS Online Tech Talks are live, online presentations that cover a broad range of topics at varying technical levels. AWS Online Tech Talks are delivered by AWS experts and feature live Q&A sessions with the audience. AWS Classroom Training are in-person or virtual courses that are led by accredited AWS instructors. AWS Classroom Training offer hands-on labs, exercises, and best practices to help customers gain confidence and skills on AWS. The other options are incorrect because they are not options that AWS makes available for customers who want to learn about security in the cloud in an instructor-led setting. AWS Trusted Advisor is an AWS service that provides real-time guidance to help customers follow AWS best practices for security, performance, cost optimization, and fault tolerance. AWS Blog is an AWS resource that provides news, announcements, and insights from AWS experts and customers. AWS Forums are AWS resources that enable customers to interact with other AWS users and get feedback and support. Reference: AWS Online Tech Talks, AWS Classroom Training

 Amazon EventBridge is the service that the company should use to meet the requirement of invoking the Lambda function once a day at a specific time. Amazon EventBridge is a serverless event bus service that allows you to easily connect your applications with data from AWS services, SaaS applications, and your own applications. You can use Amazon EventBridge to create rules that match events and route them to targets such as AWS Lambda functions, Amazon SNS topics, Amazon SQS queues, or other AWS services. You can also use Amazon EventBridge to create scheduled rules that trigger your targets at a specific time or interval, such as once a day. AWS Managed Services (AMS), AWS CodeStar, and AWS Step Functions are not services that the company should use to meet this requirement. AMS is a service that provides operational management for your AWS infrastructure and applications. AWS CodeStar is a service that provides a unified user interface for managing software development projects on AWS. AWS Step Functions is a service that coordinates multiple AWS services into serverless workflows.

The correct answer is C because AWS CloudTrail is a service that will help a company identify the user who deleted an Amazon EC2 instance yesterday. AWS CloudTrail is a service that enables users to track user activity and API usage across their AWS account. AWS CloudTrail records the details of every API call made to AWS services, such as the identity of the caller, the time of the call, the source IP address of the caller, the parameters and responses of the call, and more. Users can use AWS CloudTrail to audit, monitor, and troubleshoot their AWS resources and actions. The other options are incorrect because they are not services that will help a company identify the user who deleted an Amazon EC2 instance yesterday. Amazon CloudWatch is a service that enables users to collect, analyze, and visualize metrics, logs, and events from their AWS resources and applications. AWS Trusted Advisor is a service that provides real-time guidance to help users follow AWS best practices for security, performance, cost optimization, and fault tolerance. Amazon Inspector is a service that helps users find security vulnerabilities and deviations from best practices in their Amazon EC2 instances. Reference: AWS CloudTrail FAQs

The costs that the company will eliminate with this migration are the cost of application licensing and the cost of physical server hardware. The cost of application licensing is the fee that the company has to pay to use the software applications on its on-premises servers. The cost of physical server hardware is the expense that the company has to incur to purchase, maintain, and upgrade the servers and related equipment. By migrating to the AWS Cloud, the company can avoid these costs by using the AWS services and resources that are already licensed and managed by AWS. For more information, see [Cloud Economics] and [AWS Total Cost of Ownership (TCO) Calculator].

 The correct answer is C because AWS Trusted Advisor is an AWS service or tool that provides users with the ability to monitor AWS service quotas. AWS Trusted Advisor is an online tool that provides users with real-time guidance to help them provision their resources following AWS best practices. One of the categories of checks that AWS Trusted Advisor performs is service limits, which monitors the usage of each AWS service and alerts users when they are close to reaching the default limit. The other options are incorrect because they are not AWS services or tools that provide users with the ability to monitor AWS service quotas. AWS CloudTrail is a service that enables users to track user activity and API usage across their AWS account. AWS Cost and Usage Reports is a tool that enables users to access comprehensive information about their AWS costs and usage. AWS Budgets is a tool that enables users to plan their service usage, costs, and reservations. Reference: [AWS Trusted Advisor FAQs]

 The AWS service that the company should use for the data warehouse is Amazon Redshift. Amazon Redshift is a fully managed, petabyte-scale data warehouse service that is optimized for analytical queries. It can integrate with various data sources and business intelligence tools to provide fast and cost-effective insights. Amazon Redshift also offers high availability, scalability, security, and compliance features. [Amazon Redshift Overview]

The correct answers are A and B because Service Quotas console and AWS Trusted Advisor are AWS services or tools that can report on the quotas so that the company can improve the reliability of the application. Service Quotas console is an AWS tool that enables users to view and manage their quotas for AWS services from a central location. Users can use Service Quotas console to request quota increases, track quota usage, and set up alarms for approaching quota limits. AWS Trusted Advisor is an AWS service that provides real-time guidance to help users follow AWS best practices for security, performance, cost optimization, and fault tolerance. One of the categories of checks that AWS Trusted Advisor performs is service limits, which monitors the usage of each AWS service and alerts users when they are close to reaching the default limit. The other options are incorrect because they are not AWS services or tools that can report on the quotas so that the company can improve the reliability of the application. AWS Systems Manager is an AWS service that enables users to automate operational tasks, manage configuration and compliance, and monitor system health and performance. AWS Shield is an AWS service that protects users from distributed denial of service (DDoS) attacks. AWS Cost Explorer is an AWS tool that enables users to visualize, understand, and manage their AWS costs and usage. Reference: Service Quotas, AWS Trusted Advisor FAQs

 AWS Artifact is the AWS service that can provide security and compliance documents for an upcoming audit. AWS Artifact is a self-service portal that allows users to access and download AWS compliance reports and agreements. These documents provide evidence of AWS’s compliance with global, regional, and industry-specific security standards and regulations

The user authentication services managed by AWS are: Amazon Cognito and AWS Identity and Access Management (IAM). These services help users securely manage and control access to their AWS resources and applications. Amazon Cognito is a service that provides user sign-up, sign-in, and access control for web and mobile applications. Amazon Cognito supports various identity providers, such as Facebook, Google, and Amazon, as well as custom user pools. AWS IAM is a service that enables users to create and manage users, groups, roles, and permissions for AWS services and resources. AWS IAM supports various authentication methods, such as passwords, access keys, and multi-factorauthentication (MFA)

 Amazon Elastic Container Service (Amazon ECS) is a solution that meets the requirements of deploying and managing a Docker-based application on AWS with the least amount of operational overhead. Amazon ECS is a fully managed container orchestration service that makes it easy to run, scale, and secure Docker container applications on AWS. Amazon ECS eliminates the need for you to install, operate, and scale your own cluster management infrastructure. With simple API calls, you can launch and stop container-enabled applications, query the complete state of your cluster, and access many familiar features likesecurity groups, Elastic Load Balancing, EBS volumes, and IAM roles3.

 AWS Regions are geographic areas around the world where AWS has clusters of data centers. Each AWS Region consists of multiple, isolated, and physically separate AZ’s within a geographic area. By hosting the customer’s data in a specific AWS Region, the company can meet the requirement of hosting the data in the customer’s country. AWS Shield is a service that provides always-on detection and automatic inline mitigations that minimize application downtime and latency, so there is no need to engage AWS Support to benefit from DDoS protection. Amazon S3 Object Lock is afeature that allows you to store objects using a write-once-read-many (WORM) model. You can use it to prevent an object from being deleted or overwritten for a fixed amount of time or indefinitely. Placement groups are logical grouping of instances within a single Availability Zone. Placement groups enable applications to participate in a low-latency, 10 Gbps network. None of these services or infrastructure components can help the company host the customer’s data in a different country.

AWS is responsible for decommissioning end-of-life underlying storage devices that are used to host data on AWS. AWS follows strict and audited data destruction processes to ensure that customer data is not exposed to unauthorized individuals or devices when an AWS storage device reaches the end of its useful life. AWS uses techniques detailed in DoD 5220.22-M (“National Industrial Security Program Operating Manual”) or NIST 800-88 (“Guidelines for Media Sanitization”) to destroy data as part of the decommissioning process3.

The statement that is true regarding pricing for these eight instances is: four instances will be charged as RIs, and four will be charged as regular instances. Amazon EC2 Reserved Instances (RIs) are a pricing model that allows users to reserve EC2 instances for a specific term and benefit from discounted hourly rates and capacity reservation. RIs are purchased for a specific AWS Region, and can be shared across multiple accounts in an organization in AWS Organizations for consolidated billing. However, RIs are applied on a first-come, first-served basis, and there is no guarantee that all instances in the organization will be charged at the RI rate. In this case, Account A has purchased five RIs and has four instances running, so all four instances will be charged at the RI rate. Account B has not purchased any RIs and also has four instances running, so all four instances will be charged at the regular rate. The remaining RI in Account A will not be applied to any instance in Account B, and will be wasted.

Amazon Virtual Private Cloud (Amazon VPC) is the AWS service that allows customers to create multiple isolated networks in the same AWS account. A VPC is a logically isolated section of the AWS Cloud where customers can launch AWS resources in a virtual network that they define. Customers can create multiple VPCs within an AWS account, each with its own IP address range, subnets, route tables, security groups, network access control lists, gateways, and other components. AWS Transit Gateway, Internet gateway, and Amazon EC2 are not services or components that provide the functionality of creating multiple isolated networks in the same AWS account. AWS Transit Gateway is a service that enables customers to connect their Amazon VPCs and their on-premises networks to a single gateway. An Internet gateway is a component that enables communication between instances in a VPC and the Internet. Amazon EC2 is a service that provides scalable compute capacity in the cloud34

Amazon GuardDuty is a service that provides intelligent threat detection and continuous monitoring for the AWS environment. It analyzes network and account activity using machine learning and threat intelligence to identify potential security threats, such as unauthorized access, compromised credentials, malicious hosts, and reconnaissance activities. It also generates detailed and actionable findings that can be viewed on the AWS Management Console or sent to other AWS services, such as Amazon CloudWatch Events and AWS Lambda, for further analysis or remediation. Amazon GuardDuty OverviewAWS Certified Cloud Practitioner - aws.amazon.com

AWS Control Tower uses AWS CloudFormation to create resources in your landing zone. AWS CloudFormation is a service that helps you model and set up your AWS resources using templates. AWS Control Tower supports creating AWS::ControlTower::EnabledControl resources in AWS CloudFormation. Therefore, the correct answer is A. You can learn more about AWS Control Tower and AWS CloudFormation

 AWS Health API is available to a company that has an AWS Business Support plan. The AWS Health API provides programmatic access to the AWS Health information that is presented in the AWS Personal Health Dashboard. The AWS Health API can help users get timely and personalized information about events that can affect the availability and performance of their AWS resources, such as scheduled maintenance, network issues, or service disruptions. The AWS Health API can also integrate with other AWS services, such as Amazon CloudWatch Events and AWS Lambda, to enable automated actions and notifications. AWS Health API OverviewAWS Support Plans

 Amazon S3 offers unlimited storage for any amount of data. You can store as many objects as you want, and each object can be as large as 5 terabytes. You pay only for the storage space that you actually use, and there are no minimum commitments or upfront fees. Amazon S3 also provides high durability, availability, scalability, and security for your data.

 AWS Lambda is a compute service that lets you run code without provisioning or managing servers. AWS Lambda executes your code only when needed and scales automatically, from a few requests per day to thousands per second. You pay only for the compute time you consume - there is no charge when your code is not running. With AWS Lambda, you can run code for virtually any type of application or backend service - all with zero administration. AWS Lambda runs your code on a high-availability compute infrastructure and performs all of the administration of the compute resources, including server and operating system maintenance, capacity provisioning and automatic scaling, code monitoring and logging

 Performance efficiency is the pillar of the AWS Well-Architected Framework that represents the requirements of designing a solution for the efficient use of compute resources for an enterprise workload and making informed decisions as the technology needs evolve. It focuses on using the right resources and services for the workload, monitoring performance, and continuously improving the efficiency of the solution. Operational excellence is the pillar of the AWS Well-Architected Framework that represents the ability to run and monitor systems to deliver business value and to continually improve supporting processes and procedures. Cost optimization is the pillar of the AWS Well-Architected Framework that represents the ability to run systems to deliver business value at the lowest price point. Reliability is the pillar of the AWS Well-Architected Framework that represents the ability of a system to recover from infrastructure or service disruptions, dynamically acquire computing resources to meet demand, and mitigate disruptions such as misconfigurations or transient network issues.

 The AWS tool that will meet the requirements of the company that is planning a migration to the AWS Cloud and wants to examine the costs that are associated with different workloads is AWS Pricing Calculator. AWS Pricing Calculator is a tool that helps customers estimate the cost of using AWS services based on their requirements and preferences. The company can use AWS Pricing Calculator to compare the costs of different AWS services and configurations, such as Amazon EC2, Amazon S3, Amazon RDS, and more. AWS Pricing Calculator also provides detailed breakdowns of the cost components, such as compute, storage, network, and data transfer. AWS Pricing Calculator helps customers plan and optimize their cloud budget and migration strategy. AWS Budgets, AWS Cost Explorer, and AWS Cost and Usage Report are not the best tools to use for this purpose. AWSBudgets is a tool that helps customers monitor and manage their AWS spending and usage against predefined budget limits and thresholds. AWS Cost Explorer is a tool that helps customers analyze and visualize their AWS spending and usage trends over time. AWS Cost and Usage Report is a tool that helps customers access comprehensive and granular information about their AWS costs and usage in a CSV or Parquet file. These tools are more useful for tracking and optimizing the existing AWS costs and usage, rather than estimating the costs of different workloads34

 Global reach is the benefit of AWS Cloud computing that provides lower latency between users and applications. Global reach means that AWS customers can deploy their applications and data in multiple regions around the world, and deliver them to users with high performance and availability. AWS has the largest global infrastructure of any cloud provider, with 25 geographic regions and 81 Availability Zones, as well as 216 Points of Presence in 84 cities across 42 countries. Customers can choose the optimal locations for their applications and data based on their business requirements, such as compliance, data sovereignty, and customer proximity. Agility, economies of scale, and pay-as-you-go pricing are other benefits of AWS Cloud computing, but they do not directly provide lower latency between users and applications. Agility means that AWS customers can quickly and easily provision and scale up or down AWS resources as needed, without upfront costs or long-term commitments. Economies of scale means that AWS customers can benefit from the lower costs and higher efficiency that AWS achieves by operating at a massive scale and passing the savings to the customers. Pay-as-you-go pricing means that AWS customers only pay for the AWS resources they use, without any upfront costs or long-term contracts.

 AWS Config is a service that enables users to assess, audit, and evaluate the configurations of AWS resources. It continuously monitors and records the configuration changes of the resources and evaluates them against desired configurations and best practices. It also provides a detailed view of the resource configuration history and relationships, as well as compliance reports and notifications. AWS Config can help users maintain consistent and secure configurations, troubleshoot issues, and simplify compliance auditing. AWS Config OverviewAWS Certified Cloud Practitioner - aws.amazon.com

The correct answer is C because Dedicated Hosts are Amazon EC2 instances that are required when a user wants to utilize their existing per-socket, per-core, or per-virtual machine software licenses for a Microsoft Windows server running on AWS. Dedicated Hosts are physical servers that are dedicated to a single customer. Dedicated Hosts allow customers to use their existing server-bound software licenses, such as Windows Server, SQL Server, and SUSE Linux Enterprise Server, subject to their license terms. The other options are incorrect because they are not Amazon EC2 instances that are required when a user wants to utilize their existing per-socket, per-core, or per-virtual machine software licenses for a Microsoft Windows server running on AWS. Spot Instances are spare Amazon EC2 instances that are available at up to 90% discount compared to On-Demand prices. Spot Instances are suitable for stateless, fault-tolerant, and flexible workloads that can recover from interruptions easily. Dedicated Instances are Amazon EC2 instances that run on hardware that is dedicated to a single customer, but not to a specific physical server. Dedicated Instances do not allow customers to use their existing server-bound software licenses. Reserved Instances are Amazon EC2 instances that are reserved for a specific period of time (one or three years) in exchange for a lower hourly rate. Reserved Instances are suitable for steady-state or predictable workloads that run for a long duration. Reserved Instances do not allow customers to use their existing server-bound software licenses. Reference: Dedicated Hosts, Amazon EC2 Instance Purchasing Options

Outbound data transfers without acceleration and compute resources that are currently in use are the factors that affect costs in the AWS Cloud. Outbound data transfers without acceleration refer to the amount of data that is transferred from AWS to the internet, without using any service that can optimize the speed and cost of the data transfer, such as AWS Global Accelerator or Amazon CloudFront. Outbound data transfers are charged at different rates depending on the source and destination AWS Regions, and the volume of data transferred. Compute resources that are currently in use refer to the AWS services and resources that provide computing capacity, such as Amazon EC2 instances, AWS Lambda functions, or Amazon ECS tasks. Compute resources are charged based on the type, size, and configuration of the resources, and the duration and frequency of their usage.

AWS customer carbon footprint tool is an AWS service or tool that helps companies measure the environmental impact of their AWS usage. It allows users to estimate the carbon emissions associated with their AWS resources and services, such as EC2, S3, and Lambda. It also provides recommendations and best practices to reduce the carbon footprint and improve the sustainability of their AWS workloads4. AWS Compute Optimizer is an AWS service that helps users optimize the performance and cost of their EC2 instances and Auto Scaling groups. It provides recommendations for optimal instance types, sizes, and configurations based on the workload characteristics andutilization metrics. It does not help users measure the environmental impact of their AWS usage. Sustainability pillar is a concept that refers to the ability of a system to operate in an environmentally friendly and socially responsible manner. It is not an AWS service or tool that helps users measure the environmental impact of their AWS usage. OS-Climate (Open Source Climate Data Commons) is an initiative that aims to provide open source data, tools, and platforms to accelerate climate action and innovation. It is not an AWS service or tool that helps users measure the environmental impact of their AWS usage.

 Access keys are long-term credentials that consist of an access key ID and a secret access key. You use access keys to sign programmatic requests that you make to AWS using the AWS CLI or AWS API1. User name and password are credentials that you use to sign in to the AWS Management Console or the AWS Management Console mobile app2. SSH public keys are credentials that you use to authenticate with EC2 instances that are launched from certain Linux AMIs3. AWS Key Management Service (AWS KMS) keys are customer master keys (CMKs) that you use to encrypt and decrypt your data and to control access to your data across AWS services and in your applications4.

 Amazon Rekognition is a service that provides deep learning-based image and video analysis. One of the benefits of Amazon Rekognition is the ability to detect objects that appear in pictures, such as faces, landmarks, animals, text, and scenes. This can enable applications to perform tasks such as face recognition, face verification, face comparison, face search, celebrity recognition, emotion detection, age range estimation, gender identification, facial analysis, facial expression recognition, and more. Amazon Rekognition OverviewAWS Certified Cloud Practitioner - aws.amazon.com

 The AWS services or features that can control VPC traffic are security groups and network ACLs. Security groups are stateful firewalls that control the inbound and outbound traffic at the instance level. You can assign one or more security groups to each instance in a VPC, and specify the rules that allow or deny traffic based on the protocol, port, and source or destination. Network ACLs are stateless firewalls that control the inbound and outbound traffic at the subnet level. You can associate one network ACL with each subnet in a VPC, and specify the rules that allow or deny traffic based on the protocol, port, and source or destination. AWS Direct Connect, Amazon GuardDuty, and Amazon Connect are not services or features that can control VPC traffic. AWS Direct Connect is a service that establishes a dedicated network connection between your premises and AWS. Amazon GuardDuty is a service that monitors your AWS account and workloads for malicious or unauthorized activity. Amazon Connect is a service that provides a cloud-based contact center solution.

 The correct answers are C and D because S3 bucket policies and IAM user policies are AWS features that will meet the requirements. S3 bucket policies are access policies that can be attached to Amazon S3 buckets to grant or deny permissions to the bucket and the objects it contains. S3 bucket policies can be used to control who has permission to read, write, or delete objects that the company stores in the S3 bucket. IAM user policies are access policies that can be attached to IAM users to grant or deny permissions to AWS resources and actions. IAM user policies can be used to control who has permission to read, write, or delete objects that the company stores in the S3 bucket. The other options are incorrect because they are not AWS features that will meet the requirements. Security groups and network ACLs are AWS features that act as firewalls to control inbound and outbound traffic to and from Amazon EC2 instances and subnets. Security groups andnetwork ACLs do not control who has permission to read, write, or delete objects that the company stores in the S3 bucket. S3 bucket versioning is an AWS feature that enables users to keep multiple versions of the same object in the same bucket. S3 bucket versioning can be used to recover from accidental overwrites or deletions of objects, but it does not control who has permission to read, write, or delete objects that the company stores in the S3 bucket. Reference: Using Bucket Policies and User Policies, Security Groups for Your VPC, Network ACLs, [Using Versioning]

 AWS offers different support plans to meet the needs of different customers. The AWS Enterprise Support plan is the highest level of support that provides customers with concierge-like service, where the main focus is helping them achieve their outcomes and find success in the cloud. One of the benefits of the AWS Enterprise Support plan is that customers get designated support from an AWS technical account manager (TAM), who provides consultative architectural and operational guidance based on their applications and use cases. Therefore, the correct answer is B. You can learn more about AWS support plans and their benefits .

 Availability Zones contain multiple data centers. This is a characteristic of the AWS global infrastructure, which consists of AWS Regions, Availability Zones, and edge locations. AWS Regions are geographically isolated areas that contain multiple Availability Zones. Availability Zones are physically separate locations within an AWS Region that are engineered to be isolated from failures and connected by low-latency, high-throughput, and highly redundant networking. Each Availability Zone contains one or more data centers that house the servers and storage devices that run AWS services. Edge locations are sites that are located closer to the end users and provide caching and content delivery services. AWS Global InfrastructureAWS Certified Cloud Practitioner - aws.amazon.com

Compute Savings Plans are a flexible and cost-effective way to optimize long-term compute costs of AWS Lambda functions and Amazon EC2 instances. With Compute Savings Plans, customers can commit to a consistent amount of compute usage (measured in $/hour) for a 1-year or 3-year termand receive a discount of up to 66% compared to On-Demand prices3. Dedicated Hosts are physical servers with EC2 instance capacity fully dedicated to the customer’s use. They are suitable for customers who have specific server-bound software licenses or compliance requirements4. Reserved Instances are a pricing model that provides a significant discount (up to 75%) compared to On-Demand pricing and a capacity reservation for EC2 instances. They are available in 1-year or 3-year terms and different payment options5. Spot Instances are spare EC2 instances that are available at up to 90% discount compared to On-Demand prices. They are suitable for customers who have flexible start and end times, can withstand interruptions, and can handle excess capacity.