Amazon EC2: On-Demand Instances (Pay As You Go)

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Amazon EC2

• Amazon EC2 is stands for Amazon Elastic Compute Cloud which is a web service that
provides secure, re-sizeable compute capacity in the cloud.
• It provides you with complete control of your computing resources.
• Amazon EC2 reduces the time required to obtain and boot new server instances to
minutes, allowing you to quickly scale capacity, both up and down, as your computing
requirements change.
• Amazon EC2 changes the economics of computing by allowing you to pay only for
capacity that you actually use.
• Virtual computing environments, known as instances.
• Various configurations of CPU, memory, storage, and networking capacity for your
instances, known as instance types.
• Preconfigured templates for your instances, known as Amazon Machine Images (AMIs).
• EC2 instances are Availability Zone based Service.
• Purchasing of EC2 instances based on three options, On-Demand Instances, Reserved
Instances and Spot Instances.

On-Demand Instances (Pay as you Go)

• With On-Demand instances, you pay for compute capacity by the hour with no long-term
commitments.
• You can increase or decrease your compute capacity depending on the demands of your
application and only pay the specified hourly rate for the instances you use .

Reserved Instances

• Reserved Instances provide you with a significant discount (up to 75%) compared to On-
Demand instance pricing.
• You have the flexibility to change families, operating system types, and tenancies while
benefiting from Reserved Instance pricing when you use Convertible Reserved Instances.
Example:
Say m5.8xlarge instance type is reserved for 1 year, the pricing difference is show below.

For more details on reserved instance pricing visit the link:


https://aws.amazon.com/ec2/pricing/reserved-instances/pricing/
Spot Instances

• Spot Instances allow you to bid on spare Amazon EC2 computing capacity.
• It is available at a discount (90%) compared to On-Demand pricing.
• Spot instances will be unavailable when someone bid more than you.
• This majorly suites for the application which have flexible start and stop timing.

Steps to launch an EC2 Instances

There are 7 steps involved in launching an ec2 instances

Step 1: Choose an Amazon Machine Image (AMI)

• An AMI is a template that contains the software configuration (operating system,


application server, and applications) required to launch your instance.
• You can select an AMI provided by AWS, our user community, or the AWS Marketplace;
or you can select one of your own AMIs.

Step 2: Choose an Instance Type

• Various configurations of CPU, memory, storage, and networking capacity for your
instances, known as instance types.
Step 3: Configure Instance Details

Configuration deatails which includes

• No of instance required
• Purchasing option ( Request for spot instance )
• Selecting VPC and subnets
• Placement groups and capacity reservation
• IAM Role
• Shutdown behaviour, Enable termination protection, ENI and User data

Step 4: Add Storage

In this stage you can add additional storage and define the root device storage size. You can also
create and additional EBS volumes latter to this instance.

Step 5: Add Tags

A tag consists of a case-sensitive key-value pair

Example: Key = Name; Value = Test-server


Step 6: Configure Security Group

In this step you can create a new security group or select an existing security group.

• A security group is a set of firewall rules that control the traffic for your instance.
• Security Group is also known as Virtual firewall for the instance.

Step 7: Review Instance Launch

In this phase, review your instance launch details. You can go back to edit changes for each section, if
required.

When you click on launch, AWS will prompt for Key Pair, Create a new key pair or use existing one to
connect your instance.

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