EC2 Instance Types and Pricing Models - 3.3 | Chapter 3: Deep Dive into Compute Services | AWS Basic
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3.3 - EC2 Instance Types and Pricing Models

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EC2 Instance Types

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0:00
Teacher
Teacher

Today, we're diving into EC2 instance types. Can anyone tell me what an EC2 instance is?

Student 1
Student 1

Is it a virtual machine in the AWS cloud?

Teacher
Teacher

Exactly! Now, they are categorized into different types based on their use cases. Let's discuss the General Purpose instances first. Who can tell me what they are used for?

Student 2
Student 2

They are used for balanced applications like web servers?

Teacher
Teacher

Great! Examples include t3 and m5 instances. Now, what about Compute Optimized instances?

Student 3
Student 3

Those are for high-performance computing tasks, like batch processing!

Teacher
Teacher

Correct! And we have memory optimized for databases. Can anyone name one of the memory optimized instance types?

Student 4
Student 4

The r5 instance!

Teacher
Teacher

Excellent! In summary, we have different instances tailored for workloads - General Purpose for balance, Compute Optimized for computing power, and Memory Optimized for data-heavy applications.

Pricing Models

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Teacher
Teacher

Now, let’s move to pricing models. What do you think an On-Demand instance is?

Student 1
Student 1

Is it where you pay for resources only when you use them?

Teacher
Teacher

Exactly! You pay every hour or second without a commitment. What’s a situation where you'd use On-Demand instances?

Student 2
Student 2

If I'm just testing a new application, I wouldn't want a long-term commitment.

Teacher
Teacher

Precisely! Now, what’s the advantage of Reserved Instances?

Student 3
Student 3

You get a huge discount for committing to 1 or 3 years!

Teacher
Teacher

Yes! You can save up to 75% for steady workloads. How about Spot Instances?

Student 4
Student 4

You can bid for extra capacity at a lower rate?

Teacher
Teacher

Exactly! Great discussion today. Remember, On-Demand is flexible, Reserved gives savings, and Spot offers discounts on spare capacity.

Examples and Real-Life Applications

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Teacher
Teacher

Let’s discuss how we can apply what we learned. Can someone give a real-world application of a Compute Optimized instance?

Student 1
Student 1

I think running high-performance web servers!

Teacher
Teacher

That's right! And what about using Reserved Instances?

Student 2
Student 2

Maybe for an online business with a steady number of customers?

Teacher
Teacher

Exactly! It ensures cost-efficiency. Now, can anyone think of when to use Spot Instances?

Student 3
Student 3

For big data processing jobs that can be interrupted?

Teacher
Teacher

Spot on! In summary, understanding instance types and pricing models helps in resource optimization and cost management.

Introduction & Overview

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Quick Overview

This section explores the various EC2 instance types optimized for different workloads and the associated pricing models to effectively manage costs.

Standard

In this section, we delve into Amazon EC2's diverse instance types, each tailored for specific operational needs, and outline the pricing models available to users. Understanding these components is crucial for cost-effective cloud resource utilization.

Detailed

EC2 Instance Types and Pricing Models

Amazon Elastic Compute Cloud (EC2) provides a wide range of instance types that are optimized for different workloads, ensuring that users can select the right resources for their specific applications. Additionally, various pricing models available help manage costs effectively based on the instance usage pattern.

EC2 Instance Types

AWS categorizes its instances into families based on their intended use cases:

  • General Purpose: Balanced CPU, memory, and networking, ideal for web servers and dev/test environments. Examples include t3 and m5 instances.
  • Compute Optimized: High CPU to memory ratio, best suited for batch processing and high-performance web servers, exemplified by the c5 instance.
  • Memory Optimized: Instances like r5 feature large memory capacities, perfect for databases and real-time big data analytics.
  • Storage Optimized: Such as i3, these are designed for high I/O performance and work effectively with NoSQL databases and data warehousing.
  • Accelerated Computing: Instances like p3 leverage GPUs to support machine learning and video processing workloads.

Pricing Models

AWS also offers several pricing models to accommodate various usage patterns:
- On-Demand Instances: These are billed hourly or per second with no long-term commitments, suitable for unpredictable workloads.
- Reserved Instances: Users can commit to a 1 or 3-year term and gain significant discounts (up to 75%), making this ideal for predictable workloads.
- Spot Instances: Customers can bid for spare EC2 capacity at discounts of up to 90%. This option is perfect for flexible and interruptible workloads.
- Savings Plans: Offering a flexible pricing model with discounts in exchange for a commitment to consistent usage.

To illustrate costs, running a t2.micro On-Demand instance might be around $0.0116 per hour, but with a 1-year Reserved Instance, the cost could drop significantly to $0.007 per hour. Hence, understanding EC2 instance types and their pricing models is integral for optimizing resource allocation and expenses.

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EC2 Instance Types Overview

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AWS offers many instance types optimized for different workloads:

Family Description Use Case Examples
General Purpose (t3, m5) Balanced CPU, memory, and networking Web servers, dev/test environments
Compute Optimized (c5) High CPU to memory ratio Batch processing, high-performance web servers
Memory Optimized (r5) Large memory sizes Databases, real-time big data analytics
Storage Optimized (i3) High IO performance NoSQL databases, data warehousing
Accelerated Computing (p3) GPU-based computing Machine learning, video processing

Detailed Explanation

This chunk introduces the various types of EC2 instances available from AWS, breaking them down into different families based on their optimization for specific workloads. The General Purpose family is suitable for basic tasks like web hosting. The Compute Optimized family is designed for tasks requiring high processing power, while the Memory Optimized family caters to applications needing large amounts of memory. Storage Optimized instances deliver high input/output operations, ideal for databases, whereas Accelerated Computing instances use GPUs for intensive tasks like machine learning.

Examples & Analogies

Think of EC2 instance types as different vehicles designed for different purposes. Just as a compact car is ideal for city driving, a truck is better for hauling heavy loads, and a sports car excels in speed, each EC2 instance type is designed to perform specific tasks efficiently based on the resources required.

Pricing Models Overview

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AWS provides several pricing models tailored to different needs:

  1. On-Demand Instances: Pay per hour or second, no long-term commitment. Useful for unpredictable workloads or short-term testing.
  2. Reserved Instances: Commit for 1 or 3 years and get up to 75% discount. Good for steady state workloads.
  3. Spot Instances: Bid for spare AWS capacity at up to 90% discount. Ideal for flexible, interruptible workloads like big data and batch jobs.
  4. Savings Plans: Flexible pricing offering discounts in exchange for a commitment to consistent usage.

Example: Running a t2.micro On-Demand instance might cost $0.0116 per hour, but with a 1-year Reserved Instance, it could drop to $0.007 per hour.

Detailed Explanation

In this chunk, we explore the various pricing models offered by AWS for EC2 instances. On-Demand Instances allow you to pay only for what you use without upfront commitments, making it perfect for projects with unpredictable needs. Reserved Instances require a longer commitment in exchange for a significant discount, making them suitable for steady-state applications. Spot Instances allow users to bid on unused capacity at reduced prices, but they can be interrupted, which is suitable for flexible jobs. Savings Plans offer more flexibility while still providing savings through consistent usage commitments.

Examples & Analogies

Imagine you are renting a car. You can choose to pay for a rental only when you need the car (like On-Demand), buy the car for a discounted price if you plan to keep it for years (Reserved), take a chance on finding a deal for a car that someone else isn't using (Spot), or sign a long-term lease for a lower monthly payment (Savings Plans). Each option has its advantages and disadvantages based on your specific needs.

Definitions & Key Concepts

Learn essential terms and foundational ideas that form the basis of the topic.

Key Concepts

  • EC2 Instance Types: Various types designed for specific workloads.

  • Pricing Models: Different billing strategies based on usage patterns.

  • General Purpose: Balanced resources suitable for varied applications.

  • Compute Optimized: Best for compute-heavy applications.

Examples & Real-Life Applications

See how the concepts apply in real-world scenarios to understand their practical implications.

Examples

  • Using a t2.micro instance for hosting a small website on a budget.

  • Leveraging Reserved Instances for a web application that has steady traffic over the year.

Memory Aids

Use mnemonics, acronyms, or visual cues to help remember key information more easily.

🎡 Rhymes Time

  • In the cloud, instances arise, General, Compute, Memory for supplies.

πŸ“– Fascinating Stories

  • Imagine a baker needing a different kind of oven for muffins, bread, and pastriesβ€”each EC2 instance is like a specialized oven for various culinary tasks!

🧠 Other Memory Gems

  • Remember 'GCCM' - General, Compute, Memory, and Storage for the EC2 instance types.

🎯 Super Acronyms

POSS - Pay for On-Demand, Savings for Reserved, Spot for Flexible.

Flash Cards

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Glossary of Terms

Review the Definitions for terms.

  • Term: EC2 Instance

    Definition:

    A virtual machine running in the AWS cloud that provides customizable computing capacity.

  • Term: AMI

    Definition:

    Amazon Machine Image, a pre-configured template for creating an EC2 instance.

  • Term: General Purpose Instances

    Definition:

    Instances with balanced CPU, memory, and networking for a variety of workloads.

  • Term: Compute Optimized Instances

    Definition:

    Instances with a high CPU-to-memory ratio used for compute-intensive applications.

  • Term: Spot Instances

    Definition:

    EC2 instances offered at a lower price, which can be interrupted when AWS needs the capacity back.

  • Term: Reserved Instances

    Definition:

    Instances reserved for use for 1 or 3 years with a significant discount compared to On-Demand pricing.