- Service Overview
- EC2 provides scalable compute capacity on-demand for AWS applications
- Service offers various CPU, RAM, storage, and networking configurations
- Rightsizing minimizes computing power usage while maintaining workload requirements
- Pricing Methods
- On-Demand pricing offers flexibility but highest costs
- Savings Plans provide up to 72% discounts for one- or three-year commitments
- Reserved Instances offer up to 72% savings with capacity reservation
- Spot pricing provides cheapest option at up to 90% savings
- Dedicated Hosts combine AWS flexibility with custom hardware licensing
- Cost Management
- AWS provides cost tools like Cost Explorer and Usage Reports
- Native tools require manual tagging and analysis
- CloudZero offers detailed cost visibility and analysis capabilities
- Additional costs include block storage, egress traffic, and premium support
- Best Practices
- Rightsizing minimizes unnecessary computing power usage
- Inefficient rightsizing led to $17 billion wasted in 2020
- Regular monitoring helps control and optimize AWS spending