What Is Amazon Elastic Compute Cloud (EC2)? A Full Guide

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. 

Amazon EC2 is one of the first services that AWS offered.

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.

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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.

SSH (Secure Shell)

You can access an EC2 instance using SSH from a local Linux, MacOS or Windows device. On Windows versions prior to Windows Server 2019, you can set up SSH using PuTTY. On Windows Server 2019 and later, OpenSSH is the better option.

To access EC2 via SSH, you need SSH installed on your local device, the instance’s public IP address or domain name, and the instance’s private key. Instead of the instance’s private key, you could add your local device’s public key to the instance’s authorized keys.

Session Manager

Session Manager allows you to connect to an instance from the AWS management console. 

  • Go to the instances dashboard.
  • Click on the instance ID of the target instance, and then choose “connect.”
  • Choose “Session Manager,” and then click “connect.”

Before using Session Manager, configure SSM Agent.

Instance Connect

Instance Connect is another way to access an instance from the management console. 

  • Go to the instances dashboard.
  • Click on the instance ID of the target instance, and then choose “connect.”
  • Select “EC2 Instance Connect.”
  • Choose “connect using EC2 Instance Connect” to connect through the instance’s public IPv4 or “connect using EC2 Instance Connect endpoint” to connect using a VPC endpoint and a private IPv4 address.
  • Finally, click “connect.”

EC2 Serial Console

The EC2 serial console connects to an instance’s serial port, allowing you to troubleshoot various issues, including boot issues. You need to authorize the EC2 serial console for your account before using it for the first time.

AWS Command Line Interface (CLI)

You can connect to an instance from your terminal using AWS CLI. To do so, follow these steps:

  • Download and install AWS CLI on your device’s terminal.
  • Configure the CLI with your AWS access credentials.
  • Finally, manage your instance using the appropriate AWS CLI commands.

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. 

Routine Maintenance

Routine maintenance includes regular software updates and patches, as well as hardware checkups. AWS routinely maintains the software and hardware running EC2’s underlying infrastructure, which typically comes with minimal downtime. In fact, you do not have to do anything during these updates. In some cases, you may not even notice they are in progress.

High Performance Networking

High-performance networking is a combination of features that promote efficient, reliable and fast data transfer. EC2 instances with optimized computing and memory and enhanced GPUs inherently offer low latency. Features like enhanced networking and the elastic fabric adapter make for even smoother data transfers.

Multiple Storage Options

Storage is a service or device that retains data for a given period, usually long term. EC2 supports various instance storage options, including block storage, file system and object storage. You’ll never be stuck with one option and can always optimize to suit your workload.

Cost-Effectiveness

Cost-effectiveness means getting the most from paying as little as possible. Thanks to its pay-as-you-go pricing, EC2 is more cost-effective than traditional computing. That aside, it comes with tools like auto scaling and purchase plans like Reserved Instances and Savings Plans, which allow you to pay as little as possible for the same quality.

Scalability

Scalability is cloud infrastructure’s ability to expand or shrink in response to workload demands. You can readily deploy, pause and resume EC2 instances, meaning you can easily scale up or down manually. For dynamic scalability, EC2 auto scaling comes in handy. Since EC2 instances are scalable, they ensure reliability and performance while optimizing costs.

Global Infrastructure

Global infrastructure refers to the availability of EC2 around the world. AWS EC2 is available in every AWS region and availability zone around the world. This allows for redundancy, insulating the AWS infrastructure from single points of failure.

In addition, EC2 has various AMIs across different operating systems, including Windows and Linux distros like CentOS, Ubuntu and OpenSUSE. When not creating custom AMIs, you can get them from AWS Marketplace.

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.

How to Optimize AWS EC2 Cost

You can optimize your AWS EC2 costs by choosing the right instances, sizing workloads accordingly and selecting the appropriate purchase plans. You can optimize AWS EC2 costs with these methods:

  • Choose the right instance: EC2 offers more than 750 instances with different numbers and types of processors, memory and OS. There’s an instance for every workload. Select one that is neither undersized nor oversized for your use case. If undersized, there’ll be performance issues; if oversized, you’ll be paying more than necessary.

Tools like the Amazon Q EC2 selector, instance type explorer and EC2 instance discovery can guide you to choose the best instance for your use case.

  • Size workloads to scale: With tools like Amazon EC2 auto scaling, you can optimize costs by configuring how and when your EC2 workload scales up or down. In addition, AWS Trusted Advisor can scour your AWS account for unused instances, and AWS Compute Optimizer can implement auto workload sizing with AI/machine learning.
  • Choose the right purchase plan: AWS offers various purchase plans, which can save costs depending on your needs. For example, if you’re running fault-tolerant applications or non-continuous tasks, EC2 spot instances would be highly cost-effective. 

On-demand instances are perfect for running sensitive or continuous tasks without commitment. However, if you’re OK with a long-term commitment, you can obtain huge discounts with Reserved Instances or Savings Plans.

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 get started page

Elastic Beanstalk streamlines application deployment, allowing
developers to focus on app development.

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.

Lambda get started page

AWS Lambda is best used for tasks with a runtime of less than 15 minutes.

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 

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

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

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

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


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