Amazon Elastic Compute Cloud (EC2)? Definition, How It Works, Features, Pricing, Benefits and Use Cases

What is Amazon Elastic Compute Cloud? Also known as EC2, Elastic Compute Cloud is AWS’s core virtual machine service. Think of it as a service through which you can rent computers from AWS over the internet, taking away the need to purchase, set up and maintain physical computers.

This article talks about what you can do with EC2, how long it’s been around, its pricing, services EC2 integrates with, its advantages and much more.

What Is Amazon Elastic Compute Cloud (EC2)?

Amazon Elastic Compute Cloud is a web service through which customers rent virtual servers from Amazon Web Services (AWS). Since the servers are accessed over the internet, users do not have to worry about maintenance or the huge upfront costs of acquiring hardware. 

That aside, EC2 is cost-effective — you pay for only what you use. It is also scalable and flexible, as you can readily increase or decrease the number of servers and change the server configuration to match shifting workload demands.

What Is the History of Amazon EC2?

Amazon EC2 was first announced in 2006, with m1.small — a general-purpose instance — as the first instance. The following year, AWS introduced two more general-purpose instances: m1.large and m1.xlarge.

In May 2008, AWS released its first set of compute instances: c1.medium and c1.xlarge. In October 2009, it released its first memory-optimized instances: m2.2xlarge and m2.4xlarge. Other instances are storage optimized (December 2012), accelerated computing (September 2016) and HPC optimized (January 2022). October 2019 has seen the most instances so far.

Over time, AWS released more instances under each instance type, but some instances are now categorized as “previous generation,” including some micro instances, GPU-optimized instances, cluster compute and cluster GPU instances, and general purpose instances.

What Is an Instance of AWS EC2?

An instance of AWS EC2 is a virtual server in the AWS Cloud. Generally, the word “instance” refers to a virtual machine running in the cloud. So, while an instance of AWS EC2 is a virtual machine in the AWS cloud, an instance of Azure Virtual Machines is a virtual server in the Microsoft Azure cloud. 

What Are the Different Types of Amazon EC2 Instances?

The different types of Amazon EC2 instances are general purpose, compute optimized, storage optimized, memory optimized, accelerated computing and HPC optimized. 

• General purpose: General purpose instances have a fair balance of networking, compute and memory. For this reason, they’re suitable for regular workloads like code repositories and web servers.
• Compute optimized: Compute-optimized instances are ideal for workloads that are compute-intensive, such as gaming servers, high-performance computing and scientific modeling. Compute-optimized instances offer superior processing power compared to their counterparts in other instance types.
• Storage optimized: As the name suggests, storage-optimized instances are perfect for workloads that demand high storage performance, including high I/O frequency and low latency. Some workloads suited for this instance type include database servers and big data processing. 
• Memory optimized: Memory-optimized instances are for workloads that require high performance for in-memory tasks. Such workloads include in-memory/cache database servers and large language models (LLMs).
• HPC optimized: HPC-optimized instances are designed for running high-performance computing workloads at optimal prices. They are great for deep learning modeling, financial modeling, scientific simulations and so on.
• Accelerated computing: Accelerated computing instances use co-processors such as graphic processing units (GPUs) for enhanced computing efficiency, surpassing the performance of CPUs. This instance type is suitable for video rendering, 3D graphics and animation, machine learning and so on.

How Does Amazon EC2 Work?

EC2 works by creating virtual versions of the hardware resources normally needed to set up a server. In other words, EC2 virtualizes CPU, storage, network and memory on computer hardware in an AWS data center. How does this virtualization work? At its simplest, virtualization involves separating a portion of a physical computer’s resources into multiple environments.

Amazon EC2 instances are available in various types depending on a combination of memory, compute and networking resources. Every active instance launches based on preset configurations called AMIs (Amazon machine images), which can be custom or prebuilt. AMIs define features like the OS, storage type and preinstalled applications on a launched EC2 instance.

EC2 instances launch into a logically isolated network called a virtual private cloud (VPC), where they stay behind firewalls called security groups. They can use either instance store or EBS volumes for storage, depending on the Amazon machine image (AMI), and they follow a pay-as-you-go pricing model.

How to Access Amazon EC2

You can access Amazon EC2 using SSH, Session Manager, Instance Connect, RDP, the EC2 serial console or AWS CLI. Below, we explain how each of these access methods works.

How Does Security Work in Amazon EC2?

Security in Amazon EC2 follows a shared responsibility model, where AWS provides physical security for the data center and underlying hardware, while the customer secures the virtual server and its workloads.

AWS offers tools to help users secure workloads on EC2 instances. IAM (Identity and Access Management) prevents unauthorized access to resources, security groups, workloads and applications. Other than that, users must regularly patch their instances’ operating system with security updates. Services like AWS Secrets Manager can help users encrypt data.

What Are the Features of Amazon Elastic Compute Cloud?

The features of Amazon Elastic Compute Cloud include routine maintenance, high-performance networking, multiple storage options, cost-effectiveness, scalability and global infrastructure. 

What Does AWS EC2 Documentation Include?

AWS EC2 documentation includes user guides/references, a developer guide and references, a migration guide and best practices. The developer guides and references include API references and the CLI command reference, among others, while the user guides include key concepts for EC2 configuration, instance type descriptions and Windows AMI specifications.

How Much Does AWS EC2 Cost?

AWS EC2 pricing varies with instance types and purchase models, but you generally pay for what you use (per-second billing). Of the five types of EC2 instances, accelerated computing is generally more expensive, while general-purpose instances are comparatively the least expensive.

EC2 is available in various purchase models, including On-Demand, Spot Instances, Reserved Instances and Savings Plans. The on-demand model is generally more expensive than the others, as there are no discount options. Various discounts are available with the other options.

What Are the Benefits of Amazon EC2?

The benefits of Amazon EC2 are scalability, cost-effectiveness, reliability, elasticity, versatility, easy integration with various AWS services, security and flexibility.

• Scalability is the ability to provision or deprovision resources with changing computing demands. Unlike traditional computing, where you must set up extra hardware in response to changing workload demands, you can readily provision and shut down EC2 instances.
• Elasticity is the dynamic response of cloud infrastructure to changing workload demands. When configured with services like EC2 auto scaling, EC2 instances can automatically scale up and down as needed.
• Cost-effectiveness means spending as little as possible on the same quality or higher. EC2 instances are charged based on usage, and you don’t have to spend money on buying and maintaining hardware.
• Reliability is cloud resources’ ability to continuously remain reachable. AWS has redundant infrastructure and an EC2 SLA as high as 99.99%, highlighting EC2’s reliability.
• Versatility is the capability for something to be used in many ways. EC2 instances serve various purposes, including conducting analytics and building web servers, database servers, machine learning projects, network address translation (NAT) servers and streaming services.
• Easy integration with AWS services; EC2 instances integrate seamlessly with a vast number of AWS services, including Amazon S3, Amazon RDS, Route 53 and AWS Shield.
• Flexibility implies high adaptability. EC2 offers more than 750 instances, so you’ll likely find a fitting instance for your needs. You also get prebuilt AMIs and can configure custom AMIs.
• Security entails the efforts to protect data and application integrity. EC2 instances are deployed into subnets in logically isolated networks (VPCs), where they sit behind a firewall service (security groups).

In addition to security groups, the subnets have access control lists, which can control traffic into the instance through the subnet. EC2 instances integrate seamlessly with AWS’ vast security tool offerings.

What Are the Challenges of Amazon EC2?

The challenges of Amazon EC2 are unexpected costs and complexity. EC2 also requires significant technical expertise for optimal usage.

• Unexpected costs are ones you never see coming. Though you pay for only what you use, it is easy to incur unexpected or hidden costs when running EC2 instances.
• Complexity suggests that EC2 usage is not straightforward, particularly for beginners. Concepts like networking may require some level of expertise.
• Technical expertise means having a high level of technical skills. EC2 requires a high level of technical expertise to maximize its benefits.

What Are the Use Cases of AWS Elastic Compute Cloud?

AWS Elastic Compute Cloud use cases include running web servers, database servers, cloud-native applications, machine learning, streaming servers and high-performance computing.

AWS EC2 use cases are practically endless, but we discuss some of them below.

• Running web servers: Web servers are tools that serve websites and web applications such as Apache, nginx and Caddy. EC2 offers a scalable platform that makes it easy to deploy web servers.
• Database servers: A database server is a computer that runs a database. You can install databases like MySQL, PostgreSQL, MariaDB or SQL Server on an EC2 instance to create a database server.
• Cloud-native applications: Cloud-native applications are applications created with a goal to maximize cloud benefits. They include containerized apps and microservice apps. Since EC2 is a cloud service, it is perfect for cloud-native applications.
• Machine learning: Machine learning is a branch of artificial intelligence that deals with building machines and algorithms that learn from and improve with data. Compute-optimized, memory-optimized, accelerated-computing and HPC-optimized EC2 instance types are great for training models and deploying machine learning apps.
• Streaming services: A streaming service allows users to access media content like music and videos over the internet without downloading the media first. Accelerated computing and storage-optimized computing are ideal for serving high-quality multimedia while maintaining performance.
• High-performance computing: High-performance computing requires more computing power than regular computers can offer. EC2’s HPC-optimized instance class is dedicated to high-performance computing.

Who Are the Top AWS EC2 Customers?

The top AWS EC2 customers include Netflix, Snap Inc., Pinterest, Ancestry, ClickUp, Volkswagen, Salesforce, Lyft and Zendesk.

What Are the Different AWS Services That Can Be Used With Amazon EC2?

Amazon EC2 can be used with various AWS services, such as Amazon S3, Amazon Elastic File System (EFS), Amazon Elastic Block Storage (EBS), Amazon Relational Database Service (RDS), Amazon DynamoDB and AWS Shield.

• Amazon S3: Amazon S3 — also known as Amazon Simple Storage Service — is AWS’ object storage service. You can use it alongside EC2 to store and access object data, serve static websites and store application data.
• Amazon Elastic File System (EFS): Amazon EFS is a scalable file storage system for EC2. It is generally suited for storing and managing application files such as user uploads and logs.
• Amazon Elastic Block Storage (EBS): Amazon EBS is block storage that is suited for data persistence, high performance and scalability when used with EC2 instances.
• Amazon Relational Database Service (RDS): Amazon RDS is a managed relational database service that offers MySQL, MariaDB, PostgreSQL, Oracle, Aurora, SQL Server and Db2 databases. You can use RDS as the database for your application running on an EC2 instance.
• Amazon DynamoDB: Amazon DynamoDB is a non-relational database service. You can use it as a low-latency database for applications running on EC2.
• AWS Shield: AWS Shield is a security service focused on distributed denial-of-service (DDoS) detection and mitigation. When used with EC2 instances, it minimizes downtime resulting from DDoS attacks.

What Are the Other Compute Services Offered By AWS?

The other compute services AWS offers are Elastic Beanstalk, AWS Lambda, Amazon Elastic Container Service (ECS), Amazon Elastic Kubernetes Service (EKS) and AWS Fargate. Amazon ECS, Amazon EKS and AWS Fargate deal with container deployment and orchestration. We include more details about Elastic Beanstalk and AWS Lambda below.

Elastic Beanstalk is a compute platform preconfigured for application deployment. While EC2 falls into the infrastructure-as-a-service (IaaS) delivery model, Elastic Beanstalk falls into the platform-as-a-service (PaaS) model. This means EC2 requires more infrastructural configuration to arrive at the finished product, while Elastic Beanstalk requires little to none.

AWS Lambda is a serverless computing service, meaning it runs code without you having to set up or manage the underlying infrastructure. AWS Lambda is a PaaS (more specifically, function as a service, or FaaS), while EC2 is IaaS, so Lambda requires less management than EC2. However, EC2 offers more customization and no runtime limit, which Lambda doesn’t.

Final Thoughts 

Amazon Elastic Compute Cloud is a scalable, cost-effective and reliable cloud compute service. Thanks to its versatility, security and flexibility, EC2 serves various purposes across multiple industries, even beyond tech.

Which virtual machine service do you typically recommend? Have you ever used Amazon EC2 or a close alternative? Did you have a better experience with the alternative? Share your thoughts and experiences in the comments. Thank you for reading.

FAQ: AWS Elastic Compute Cloud Meaning 

• What Is Amazon Elastic Compute Cloud Used For?

  Amazon Elastic Compute Cloud is used for scalable, cost-effective and reliable computing needs, including cloud-native applications, web servers and machine learning.

• What Is Elastic Computing in Cloud Computing?

  Elastic computing refers to cloud resources’ ability to dynamically respond to workload demands by scaling up or down.

• What Is the Purpose of Amazon Elastic Compute Cloud Amazon EC2 User Data?

  Amazon Elastic Compute Cloud Amazon EC2 User Data is a script with which you can configure an EC2 instance during the launch process.

• What Is EC2 in Simple Terms?

  EC2 is an AWS service that offers virtual computers over the internet.