My Cloud Journey — Week 10: Learning about EC2 and Pricing Models

Introduction

This week, I learned about Amazon EC2 and its various features and pricing models. Here’s a detailed summary of my learnings:

💻 Amazon EC2

Explored Different EC2 Instance Families and Types

• General Purpose: Balances compute, memory, and networking resources for a variety of workloads.
• Compute Optimized: Ideal for compute-bound applications that benefit from high-performance processors.
• Memory Optimized: Designed for memory-intensive applications, providing fast performance for large datasets.
• Storage Optimized: Suitable for applications requiring high, sequential read and write access to very large datasets on local storage.
• Accelerated Computing: Uses hardware accelerators or co-processors to perform functions such as floating-point calculations, graphics processing, or data pattern matching more efficiently than software running on general-purpose CPUs.

Understood the Differences Between Dedicated Hosts and Dedicated Instances

• Dedicated Hosts: Physical EC2 servers dedicated for your use, providing visibility and control over instance placement. Suitable for meeting compliance requirements and using existing server-bound software licenses.
• Dedicated Instances: Instances running on hardware dedicated to a single customer. Unlike Dedicated Hosts, they do not provide visibility into the physical server level.

Learned About EC2 Tenancy Options

• Shared Tenancy: Instances run on shared hardware. This is the default and cost-effective option.
• Dedicated Tenancy: Instances run on hardware dedicated to a single customer, including Dedicated Instances and Dedicated Hosts.
• Host Tenancy: Provides additional control by allocating a physical server for your exclusive use.

💰 EC2 Pricing Models

Learned About Various Pricing Models

• On-Demand: Pay for compute capacity by the second with no long-term commitments. Ideal for short-term, irregular workloads.
• Reserved Instances (RI): Provide significant discounts (up to 75%) compared to On-Demand pricing. Best for predictable usage. Offers:
  • Standard RI: Most significant discount but less flexibility.
  • Convertible RI: Some flexibility to change attributes during the term.
• Spot Instances: Allows bidding on spare EC2 capacity. Ideal for flexible applications that can handle interruptions.
• Dedicated: Run instances on single-tenant hardware for workloads needing a dedicated server.
• Savings Plan: A flexible pricing model offering lower prices in exchange for a commitment to consistent usage over a 1 or 3-year term.

Explored RI Attributes, Regional & Zonal Options, and Limits

• Attributes: Instance type, tenancy, platform, and scope (regional or zonal).
• Regional vs Zonal: Regional RIs apply discounts to any instance usage in a region, while Zonal RIs provide capacity reservations in specific Availability Zones.
• Limits: The number of RIs you can purchase is subject to limits, which can be increased by request.

Understood the Nuances Between Standard vs Convertible RI

• Standard RI: Offers the highest discount, with modifications allowed for switching between Availability Zones, instance sizes, and network platforms.
• Convertible RI: Offers a lower discount but provides flexibility to change the instance family, operating system, and tenancy.

Learned About Capacity Reservations and the RI Marketplace

• Capacity Reservations: Ensure EC2 capacity when needed, irrespective of the pricing model. You can create reservations for specific instance types in a specific Availability Zone.
• RI Marketplace: A platform to buy and sell unused Standard RIs, allowing recovery of costs on unused RIs.

💡 Why This Matters

• Amazon EC2: Understanding various instance types and families aids in selecting the right configuration for specific workloads, optimizing performance and cost.
• Pricing Models: Knowing different pricing models enables effective cost management and budget planning. Choosing the right model can lead to significant savings.
• Tenancy Options: Understanding tenancy options ensures compliance with regulatory requirements and efficient use of existing software licenses.

Conclusion

This week’s focus on Amazon EC2 and its pricing models has provided me with a comprehensive understanding of how to effectively utilize EC2 instances while optimizing costs. I look forward to applying these learnings in practical scenarios and continuing my AWS journey.

Asif Khan — Aspiring Cloud Architect | Weekly Cloud Learning Chronicler

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