Which statement about Amazon CloudWatch is true?

Amazon CloudWatch plays a critical role in monitoring and management within Amazon Web Services. The statement that CloudWatch provides the ability to create alarms and sends notifications highlights one of its significant functionalities. With CloudWatch, users can set up alarms based on metrics—such as CPU utilization, disk reads/writes, and network traffic—allowing for proactive management of resources. When a specified threshold is breached, CloudWatch can automatically trigger notifications to alert administrators or take defined actions like scaling resources or stopping an instance. This capability is essential for maintaining system health, optimizing resource usage, and ensuring reliability.

The other statements present limitations that do not accurately reflect the comprehensive features of CloudWatch, such as its ability to monitor a wide range of AWS services, not just network traffic, and visualize data from various sources beyond EC2 instances. Additionally, CloudWatch can help detect anomalies through its monitoring capabilities, which is contrary to any suggestion that it is not useful for that purpose.