Amazon EC2 Overview

Amazon EC2 offers scalable compute capacity in the cloud with various pricing and configuration options to meet diverse workloads.

Pricing Models

  • On-Demand – Pay by the hour or second with no long-term commitment.
  • Spot – Pay for unused capacity at up to 90% discount; ideal for flexible, interruptible workloads.
  • Reserved – Reserve capacity with 1 or 3-year commitments for up to 72% discount.
  • Savings Plan – Flexible pricing model with commitment for 1 or 3-year commitments, offering up to 66% discount.
  • Dedicated – Access to a physical server dedicated to a single user for regulatory or compliance requirements.

Learn more about EC2 Pricing


Security Group

Security Groups act as virtual firewalls controlling inbound and outbound traffic for EC2 instances.

FeatureDescription
Changes take effect immediatelyAny changes to rules apply instantly to associated instances.
AttachmentsCan be attached to multiple EC2 instances and instances can have multiple security groups attached.
Inbound TrafficBlocked by default; only traffic allowed by rules can enter.
Outbound TrafficAllowed by default; outbound traffic can be restricted by custom rules.

Networking Enhancements

  • Basic Networking – Standard networking capabilities.
  • Enhanced Networking – Provides network speeds between 10–100 Gbps for high throughput and low latency.
  • Elastic Fabric Adapter (EFA) – Ideal for High-Performance Computing (HPC) and Machine Learning applications requiring low-latency communication.

Placement Groups

EC2 Placement Groups determine how instances are placed on hardware for specific performance or redundancy needs.

TypeDescriptionUse Case
ClusterLow latency, high throughput within a single AZ.Applications requiring high network throughput.
SpreadInstances are placed on distinct hardware to reduce impact of failures.For critical instances that must remain isolated from each other.
PartitionInstances are grouped into multiple partitions within an AZ.Big data workloads or applications with fault tolerance requirements.

Cluster Limitations:

  • Cannot span multiple Availability Zones.
  • Only supports compute, GPU, memory, and storage instance types.
  • Instances within a cluster placement group should be homogeneous.
  • Cannot merge multiple placement groups.
  • Existing instances can be moved into placement groups.

Additional Features

  • Spot Fleet – A collection of Spot Instances and, optionally, On-Demand Instances to meet target capacity.
  • VMware Integration – EC2 can deploy VMware environments through vCenter.