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Amazon Elastic Compute Cloud (Amazon EC2) is an AWS service that provides on-demand, scalable computing capacity as virtual servers called instances. You choose the server configuration and software, then adjust the number or size of instances as your workload changes.
What does “Elastic Compute Cloud” mean?
Elastic refers to the ability to increase or reduce computing capacity as demand changes. For example, a service can add instances to handle a traffic increase and scale back when demand falls. This flexibility does not happen automatically in every setup: scaling depends on how you configure EC2 and related AWS services. AWS defines EC2 as providing on-demand, scalable computing capacity in the AWS Cloud: Amazon EC2 documentation.
Compute is the processing capacity used to run applications and other workloads. Cloud means you obtain and configure virtual server capacity through AWS instead of buying and operating the underlying server hardware. AWS provides the infrastructure; you manage your instances and their configurations.
What is an EC2 instance?
An EC2 instance is a virtual server running in AWS. You launch it from an Amazon Machine Image (AMI), which acts as a starting template and provides an operating system; it may also include an application server or applications. You select an instance type, set up network access and security, connect to the instance, and install or update software. See AWS’s EC2 instance documentation.
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Terms you will encounter
- AMI: The template used to launch an instance, including its operating system and any included software.
- Instance type: The resource configuration available to the virtual server, including its compute, memory, storage, and network capabilities.
- Amazon EBS volume: Persistent block storage that can be used with an instance.
- Instance store: Temporary storage. AWS says its data is deleted when the instance is stopped, hibernated, or terminated.
- Key pair: Login credentials; AWS stores the public key, while you must keep the private key secure.
- Security group: A virtual firewall that controls permitted traffic to and from instances.
- EC2 Auto Scaling: A related service that helps maintain an appropriate number of instances for an application’s load.
For details about these launch and configuration concepts, see AWS’s guide to launching and using instances.
How do you choose an EC2 instance?
Start with the needs of the application rather than looking for a universally best instance. Instance types vary in their balance of compute, memory, storage, and network performance. AWS recommends reviewing the specifications and benchmarking candidates against your workload. Current types and availability can vary by Region, so consult the EC2 instance type guide when comparing options.
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How does EC2 pricing work?
EC2 does not have one flat price. AWS lists multiple purchasing options, including On-Demand Instances, Savings Plans, Reserved Instances, Spot Instances, Dedicated Hosts, and On-Demand Capacity Reservations. The appropriate option depends on your usage pattern, capacity needs, commitment, configuration, and Region. For a current estimate, use the EC2 pricing page or the AWS Pricing Calculator; rates and terms can change.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Is EC2 the only AWS compute option?
No. EC2 offers configurable virtual servers, while AWS positions Amazon Lightsail for quicker deployment of websites and web applications with a low, predictable monthly price. Lightsail may suit a workload where simpler setup and price predictability matter; EC2 may fit when you need to choose and manage more of the server configuration. The right choice depends on the workload—AWS’s EC2 and Lightsail comparison describes the options, but does not make either universally cheaper or better.
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Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
