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EC2

Sahil Kapoor's Playbook May 12, 2026
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Amazon EC2 (Elastic Compute Cloud) is AWS's primary virtual machine service. EC2 provisions virtual servers (instances) in minutes, billed by the second, with a wide selection of CPU, memory, GPU, and network configurations. EC2 launched in 2006 and remains the bedrock compute primitive on which much of AWS is built.

Core concepts

  • Instance type. A family + size that defines CPU, memory, storage, and network capacity (e.g. m7i.xlarge, c7g.large, g5.2xlarge).
  • AMI (Amazon Machine Image). The OS image used to boot the instance.
  • EBS volume. Network-attached block storage; persists independently of the instance.
  • Security group. Stateful instance-level firewall rules.
  • Key pair. SSH credentials used at launch; the instance has the public key, the user holds the private key.
  • VPC and subnet. The virtual network the instance lives in.

Purchase options

  • On-demand. Pay per second, no commitment.
  • Reserved Instances and Savings Plans. Commit to one or three years for substantial discounts.
  • Spot. Use spare capacity at up to 90% off; can be reclaimed with a two-minute notice.
  • Dedicated Hosts and Instances. Hardware not shared with other AWS customers, for licensing or compliance needs.

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Related Terms AWS, Cloud Computing, S3, Lambda, Region, Availability Zone.

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