AWS EC2 Cheat Sheet: Mastering Compute for AWS Solutions Architects


Amazon Elastic Compute Cloud (EC2) is a fundamental service in AWS that provides resizable compute capacity in the cloud. Understanding EC2 concepts is crucial for the AWS Certified Solutions Architect Associate (SAA) exam. This cheat sheet provides an in-depth review of key EC2 topics, including instance types, networking, pricing, and lifecycle management.
Benefits of Amazon EC2
Elastic Computing: Scale instances up or down as needed.
Complete Control: Full administrative access to instances.
Flexibility: Choose from multiple instance types, OS, and software.
Reliability: High availability and rapid replacement of instances.
Security: Integration with VPC and security features.
Cost-Effective: Pay-as-you-go pricing model.
When to Choose EC2 Over Other AWS Services
EC2 is best suited for scenarios requiring full control over the infrastructure, custom configurations, or when specific software dependencies must be met.
Scenarios Where EC2 is the Best Choice
Use Case | Why Choose EC2? | Alternative AWS Service |
Hosting Legacy Applications | Some applications require specific OS versions, configurations, or software that cannot run on managed services. | AWS Lambda, AWS Fargate |
Custom Machine Learning Workloads | Need to use custom ML frameworks, GPUs, or specialized hardware. | Amazon SageMaker |
High-Performance Computing (HPC) | Tight inter-node communication, low latency, and high-speed networking. | AWS Batch, AWS Lambda |
Self-Managed Containers | When orchestration flexibility is required, or Kubernetes is used in a non-managed way. | Amazon ECS, Amazon EKS, AWS Fargate |
Regulatory Compliance Requirements | Some industries require dedicated infrastructure control and monitoring. | AWS Outposts, AWS Lambda |
Gaming Servers | Require low-latency, high-performance, persistent instances. | AWS GameLift |
Big Data Processing | Applications such as Apache Hadoop, Spark, or Kafka require control over compute nodes. | AWS EMR |
BYOL (Bring Your Own License) | Some software vendors require customers to run applications on dedicated hosts. | AWS License Manager, AWS Dedicated Hosts |
Persistent Long-Running Applications | Need full OS control, custom runtime, or long-running processes. | AWS Lambda (for event-driven), AWS Fargate (for containers) |
Key Concepts of EC2
1. EC2 Placement Groups
EC2 instances can be placed in the following ways to optimize performance and availability
Type | Description | Pros | Cons | Use Case |
Cluster | Places instances close together inside a single Availability Zone to achieve high network throughput and low latency. | ✅ Low latency communication. | 🔶Limited to a single AZ, creating availability risk. | I🚀deal for high HPC and big data workloads. |
Spread | Distributes instances across distinct underlying hardware to reduce correlated failure risk. | ✅ Provides high availability by | 🔶 Limited to a maximum of 7 instances per AZ. | 🚀Suitable for critical applications requiring fault tolerance. |
Partition | Spreads instances across multiple partitions within an AZ, ensuring that groups of instances do not share the same physical hardware. | ✅ Reduces the risk of simultaneous failure for large-scale distributed applications. | 🔶More complex setup and management. | 🚀Suitable for distributed big data applications (e.g., Hadoop, Cassandra). |
2. EC2 Pricing Models
Pricing Model | Description | Example Use Case |
On-Demand | Pay per hour/second, best for short-term workloads. | Ideal for development/testing environments. |
Spot Instances | Uses spare capacity, up to 90% discount; can be interrupted. | Best for batch processing and fault-tolerant apps. |
Reserved | 1- or 3-year commitment based on using specific instances type, region and AZ. Up to 75% discount. | Great for steady-state applications like databases. |
Savings Plans | Commitment-based on usage of certain dollar amount per hour over a 1- or 3-year period. | Cost-saving option for long-term, consistent usage. |
Dedicated Instances | Physically isolated instances in a shared environment. | Suitable for regulatory compliance workloads. |
Dedicated Hosts | Entire physical server dedicated to you. | Ideal for BYOL (Bring Your Own License) scenarios. |
Dedicated Instances vs. Dedicated Host
Characteristic | Dedicated Instances | Dedicated Hosts | Example Use Case |
Enables the use of dedicated physical servers | ✅ Yes | ✅ Yes | Organizations with strict compliance/security needs requiring isolated infrastructure (e.g., finance, healthcare). |
Per instance billing (subject to a $2 per region fee) | ✅ Yes | ❌ No | Running individual secure workloads without needing an entire physical server. (e.g., SaaS applications) |
Per host billing | ❌ No | ✅ Yes | Running multiple instances on a single host while maintaining full hardware control (e.g., database licensing). |
Visibility of sockets, cores, host ID | ❌ No | ✅ Yes | Software licensing tied to physical hardware, such as Oracle databases that charge per core/socket. |
Affinity between a host and instance | ❌ No | ✅ Yes | Ensuring critical applications always run on the same physical server for performance consistency. (eg., Low-Latency Game Servers) |
Targeted instance placement | ❌ No | ✅ Yes | Workloads requiring predictable performance by assigning specific instances to particular hardware. |
Automatic instance placement | ✅ Yes | ✅ Yes | EC2 automatically places instances for high availability without manual intervention. |
Add capacity using an allocation request | ❌ No | ✅ Yes | Enterprises reserving capacity in advance for scaling workloads as demand grows (e.g., seasonal traffic s |
3. EC2 Instance Lifecycle
State | Description |
Stopped | No charge for instance, but EBS volumes incur cost. |
Hibernated | Saves RAM contents to EBS, retains instance ID. |
Rebooted | OS-level reboot, retains all configurations. |
Terminated | Instance is deleted; root EBS volume is lost by default. |
Recovered | CloudWatch can recover instances from hardware failure. |
4. Storage - Amazon EBS & Instance Store
Amazon EBS - is a durable, high-performance block storage that attaches to EC2 instances,It provides persistent storage.
Instance Store - is a temporary, high-performance storage physically attached to the host machine running an EC2 instance
Key Differences: Amazon EBS vs. Instance Store
Feature | Amazon EBS | Instance Store |
Persistence | Data persists | Data is lost on stop/terminate |
Performance | High, but network-attached | Ultra-low latency, local storage |
Volume Type Options | SSD, HDD, Provisioned IOPS | Fixed per instance type |
Snapshots & Backups | Supported via EBS Snapshots | Not supported |
Cost | Pay for usage | Free (included with some instances) |
Ideal Use Case | Databases, boot volumes, persistent workloads | Caching, temporary storage, high-speed processing |
How to Choose Between EBS and Instance Store?
If You Need... | Choose |
Persistent storage | EBS |
High IOPS databases | EBS (io2, io1) |
Low-latency, high-speed data access | Instance Store |
Scratch disk for processing | Instance Store |
Flexible scalability & backup options | EBS |
Cheapest storage for infrequent access | EBS (st1, sc1) |
5. Instance Metadata and User Data
Instance Metadata
Instance metadata provides information about a running EC2 instance and can be accessed using the /latest/meta-data/
User Data
User data is used to run scripts during the instance boot process and is accessible at
/latest/user-data
User data is often utilized for:
Installing software packages
Configuring the instance upon launch
Running initialization scripts
6. Public, Private, and Elastic IP Addresses
IP Address Type | Description |
Public IP | Assigned to instances in public subnets; lost upon stopping instance; free of charge. |
Private IP | Retained across reboots; used within VPC for internal communication. |
Elastic IP | Static public IP; chargeable when not associated with an instance; can be moved between instances. |
7. AWS Nitro System
AWS Nitro is an advanced virtualization system for EC2 instances, designed to improve security, performance, and cost efficiency. It offloads virtualization functions to dedicated hardware, reducing overhead and increasing system performance.
Key features include:
Nitro Cards: Dedicated hardware for networking, storage, and security.
Nitro Hypervisor: A lightweight hypervisor that provides near bare-metal performance.
Nitro Enclaves: Secure isolated environments for processing sensitive data.
Improved I/O Performance: Enables faster network and disk operations.(e.g., 100Gbps , 60 TB)
Bare Metal Instances: Provides direct access to hardware for workloads requiring minimal virtualization.
Increased Security: Reduces attack surface by eliminating unnecessary software components.
Conclusion
Amazon EC2 is a powerful and flexible cloud computing service that is crucial for the AWS Certified Solutions Architect Associate (SAA) exam. Understanding EC2’s networking, pricing, lifecycle, and placement strategies will help you design resilient and cost-effective solutions in AWS.
Pro Tip: Hands-on practice with AWS Free Tier and test scenarios in the AWS Management Console will reinforce these concepts effectively!
For further reading, visit the AWS EC2 Documentation.
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Written by

Suman Thallapelly
Suman Thallapelly
Hey there! I’m a seasoned Solution Architect with a strong track record of designing and implementing enterprise-grade solutions. I’m passionate about leveraging technology to solve complex business challenges, guiding organizations through digital transformations, and optimizing cloud and enterprise architectures. My journey has been driven by a deep curiosity for emerging technologies and a commitment to continuous learning. On this space, I share insights on cloud computing, enterprise technologies, and modern software architecture. Whether it's deep dives into cloud-native solutions, best practices for scalable systems, or lessons from real-world implementations, my goal is to make complex topics approachable and actionable. I believe in fostering a culture of knowledge-sharing and collaboration to help professionals navigate the evolving tech landscape. Beyond work, I love exploring new frameworks, experimenting with side projects, and engaging with the tech community. Writing is my way of giving back—breaking down intricate concepts, sharing practical solutions, and sparking meaningful discussions. Let’s connect, exchange ideas, and keep pushing the boundaries of innovation together!