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AWS SAP-C02 Drill: Serverless Refactoring - The Operational Overhead vs. Cost Trade-off Analysis

Jeff Taakey
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Jeff Taakey
21+ Year Enterprise Architect | Multi-Cloud Architect & Strategist.
Jeff's Architecture Insights
Go beyond static exam dumps. Jeff’s Insights is engineered to cultivate the mindset of a Production-Ready Architect. We move past ‘correct answers’ to dissect the strategic trade-offs and multi-cloud patterns required to balance reliability, security, and TCO in mission-critical environments.

While preparing for the AWS SAP-C02, many candidates get confused by when to use serverless versus container-based refactoring. In the real world, this is fundamentally a decision about operational overhead elimination vs. migration complexity. Let’s drill into a simulated scenario.

The Scenario
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StreamVibe, a digital media startup, operates a user-generated video platform that experiences unpredictable traffic with massive spikes during quarterly talent competitions. Their current architecture consists of:

  • Web tier: EC2 instances in an Auto Scaling Group serving the upload interface
  • Storage: Videos stored on EBS volumes attached to processing instances
  • Processing tier: EC2 instances in a separate Auto Scaling Group consuming from an SQS queue
  • Classification: A licensed third-party video recognition library requiring specialized installation and maintenance
  • Content delivery: Static web assets served from the same EC2 fleet

The engineering VP has mandated a refactoring initiative with three non-negotiable goals:

  1. Minimize operational overhead by maximizing AWS managed services
  2. Eliminate third-party software licensing and maintenance burden
  3. Maintain cost efficiency during traffic variability

Key Requirements
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Redesign the architecture to maximize use of AWS managed services, eliminate custom software dependencies, and reduce operational complexity while handling variable traffic patterns cost-effectively.

The Options
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  • A) Migrate the web application to Amazon ECS containers; use Spot Instances for the SQS processing Auto Scaling Group; replace custom software with Amazon Rekognition for video classification.

  • B) Store uploaded videos in Amazon EFS and mount the file system to the web application EC2 instances; use AWS Lambda functions that invoke Amazon Rekognition API to process the SQS queue for video classification.

  • C) Host the web application’s static content in Amazon S3; store uploaded videos in Amazon S3; use S3 Event Notifications to publish to the SQS queue; use AWS Lambda functions that invoke Amazon Rekognition API to process the SQS queue for video classification.

  • D) Use AWS Elastic Beanstalk to launch the web application EC2 instances in an Auto Scaling Group and deploy a worker environment to process the SQS queue; replace custom software with Amazon Rekognition for video classification.

Correct Answer
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Option C.


The Architect’s Analysis
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Correct Answer
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Option C - Full serverless refactoring with S3 static hosting and Lambda-based video processing.

Step-by-Step Winning Logic
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This solution represents the optimal trade-off for the stated requirements:

  1. Operational Overhead Minimization:

    • S3 static hosting eliminates web server patching, scaling, and monitoring
    • Lambda removes ALL compute infrastructure management
    • S3 Event Notifications provide native, zero-configuration event routing
    • No Auto Scaling Group tuning, no capacity planning
  2. Cost Optimization for Variable Traffic:

    • S3 hosting: Pay only for storage + requests (typically $0.023/GB + $0.0004/1K requests)
    • Lambda: Pay per 100ms execution increments (no idle cost during low traffic)
    • Rekognition: Pay per video minute analyzed (usage-based pricing)
    • Contrast with EC2: Even with Auto Scaling, minimum instance count incurs base cost during low-traffic periods
  3. Third-Party Dependency Elimination:

    • Rekognition is fully managed (no software installation, licensing, or version management)
    • Integrated with Lambda via AWS SDK (no custom integration layers)
  4. Scalability Without Engineering:

    • S3 automatically handles request spikes
    • Lambda concurrency scales to 1,000 concurrent executions by default (can request increase)
    • No Auto Scaling policy tuning or warmup delays

The Traps (Distractor Analysis)
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  • Why not Option A?

    • ECS still requires cluster management, task definition versioning, and container image maintenance
    • Spot Instances add operational complexity (interruption handling, mixed instance policies)
    • Does NOT address static content hosting - still serving from compute instances
    • Fails the “maximize managed services” requirement - containers are infrastructure-as-code, not fully managed
  • Why not Option B?

    • EFS + EC2 architecture retains server management (patching, AMI updates, scaling policies)
    • EFS cost model ($0.30/GB-month for Standard) is expensive for video storage compared to S3 ($0.023/GB-month)
    • Mounting EFS to multiple instances introduces potential I/O bottlenecks and throughput mode tuning
    • Static content still served from EC2 - misses S3 hosting opportunity
  • Why not Option D?

    • Elastic Beanstalk is Platform-as-a-Service, not serverless - still manages underlying EC2 instances
    • Worker environments still require capacity planning and instance management
    • Higher operational overhead than Lambda (platform updates, environment health monitoring)
    • Cost inefficiency - EB environments maintain minimum instance capacity even during idle periods
    • Partial compliance - reduces overhead compared to raw EC2, but doesn’t maximize managed services

The Architect Blueprint
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graph TD User([End User]) -->|Upload Video| S3Web[S3 Static Website<br/>Web Interface] S3Web -->|PUT Object| S3Video[S3 Bucket<br/>Video Storage] S3Video -->|S3 Event Notification| SQS[SQS Queue<br/>Processing Requests] SQS -->|Trigger| Lambda[Lambda Function<br/>Video Processor] Lambda -->|Analyze Video| Rekognition[Amazon Rekognition<br/>Video Analysis API] Rekognition -->|Return Labels| Lambda Lambda -->|Store Metadata| DynamoDB[(DynamoDB<br/>Classification Results)] style S3Web fill:#FF9900,stroke:#232F3E,color:#FFF style S3Video fill:#569A31,stroke:#232F3E,color:#FFF style Lambda fill:#FF9900,stroke:#232F3E,color:#FFF style Rekognition fill:#C925D1,stroke:#232F3E,color:#FFF style SQS fill:#FF4F8B,stroke:#232F3E,color:#FFF

Diagram Note: S3 Event Notifications directly trigger SQS, which invokes Lambda functions to process videos via Rekognition, creating a fully serverless, event-driven pipeline with zero server management.

The Decision Matrix
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Option Est. Complexity Est. Monthly Cost (1M videos, 500GB storage, 10TB egress) Pros Cons
A - ECS + Spot High $800-1,200 (ECS cluster ~$150, Spot ~$300-500, data transfer ~$350, Rekognition ~$200) • Container portability
• Spot pricing for batch
• ECS cluster management overhead
• Spot interruption handling
• Still serving static content from compute
• Container image maintenance
B - EFS + Lambda Medium-High $1,400-1,800 (EC2 ~$300, EFS 500GB ~$150, Lambda ~$100, Rekognition ~$200, data transfer ~$650-850) • Lambda for processing
• Rekognition integration
• Expensive EFS storage for videos
• EC2 operational overhead
• EFS performance tuning complexity
• High data transfer costs
C - Full Serverless Low $450-600 (S3 500GB ~$12, requests ~$40, Lambda ~$100, Rekognition ~$200, CloudFront optional ~$100-150) • Zero server management
• Pay-per-use pricing
• Auto-scaling without configuration
• Lowest operational cost
• S3 durability (11 9’s)
• Lambda 15-minute timeout (large videos need chunking)
• Cold start latency (mitigated with provisioned concurrency if needed)
D - Elastic Beanstalk Medium $700-950 (EB environment ~$250-400, worker ~$200-300, Rekognition ~$200, data transfer ~$50-150) • Simplified EC2 deployment
• Integrated monitoring
• Platform-level management still required
• Minimum capacity costs
• Not fully serverless
• EB platform update windows

FinOps Insight: Option C reduces monthly operational cost by 40-60% while eliminating infrastructure management. For 1M videos/month with variable traffic, Lambda’s pay-per-invocation model saves ~$200-400/month compared to maintaining minimum EC2/ECS capacity during low-traffic periods.

Real-World Practitioner Insight
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Exam Rule
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For the SAP-C02 exam, when you see “minimize operational overhead” + “variable traffic” + “replace third-party software”, always prioritize:

  1. S3 for static content and object storage
  2. Lambda for event-driven processing
  3. Managed AI/ML services (Rekognition, Comprehend, etc.) over self-hosted solutions

The exam favors maximum serverless adoption at the Professional level.

Real World
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In production, we would likely implement:

  • CloudFront in front of S3 for global content delivery and DDoS protection (adds ~$100-150/month but reduces S3 request costs and improves UX)
  • S3 Intelligent-Tiering for video storage to automatically move infrequently accessed videos to cheaper tiers (saves ~30% on storage after 6 months)
  • Step Functions to orchestrate multi-step video processing workflows (transcoding, thumbnail generation, Rekognition analysis) instead of single Lambda functions
  • Reserved Capacity for Rekognition if video processing volume is predictable (can save 20-30% on Rekognition costs)
  • Lambda Provisioned Concurrency for 10-50 warm instances during known peak hours (quarterly competitions) to eliminate cold starts
  • S3 Transfer Acceleration if users upload from globally distributed locations
  • Cost anomaly detection via AWS Cost Anomaly Detection to catch unexpected Rekognition or Lambda usage spikes

Trade-off Alert: The exam scenario doesn’t mention global users or latency requirements. In reality, if StreamVibe has international users, the architecture would need CloudFront + S3 Transfer Acceleration, increasing costs by ~15-20% but reducing upload times by 50-200% for distant users.

Hybrid Consideration: For enterprise customers with compliance requirements to keep video processing on-premises (e.g., unreleased film studios), we’d use S3 File Gateway to present S3 as NFS/SMB shares to on-prem processing systems while still using Lambda + Rekognition for the cloud-native workflow.

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