Amazon EC2 Pricing: 7 Things You NEED To Know 🔥 | AWS

Amazon EC2 is an AWS service that provides resizable compute capacity in the cloud with four purchase models: On-Demand, Savings Plans, Reserved Instances, and Spot Instances.

Hi Guys, this is Abi from GokceDB and in this video, you are going to learn 7 things about Amazon EC2 pricing and capacity optimization in AWS. Let's get into it.

1. To optimize EC2 compute costs, start by choosing the right EC2 purchase model for your workload then select the right instance to fine-tune price-performance and finally map usage to actual demand.

2. You can take advantage of unused EC2 capacity for up to 90% off On-Demand pricing with EC2 Spot Instances. Spot instances are a good fit for fault-tolerant and stateless applications such as containers, machine learning, and more.

3. You can save up to 72% on EC2, Fargate, and Lambda when you commit to a consistent amount of usage with a 1 or 3-year term with AWS Savings Plans. Just like Reserved Instances, Savings Plans are commitment-based, however, they offer more flexibility as the savings can be applied across different instance types and Regions.

4. EC2 instances powered by AMD-based processors offer up to 10% lower cost versus comparable instances.

5. EC2 instances powered by AWS Graviton2 processors deliver up to 20% lower cost when compared to x86 instances.

6. With EC2 Auto Scaling, you can improve application resiliency by automatically adding or removing EC2 instances and by mixing multiple purchase options and instance types.

7. AWS Compute Optimizer recommends instances that balance performance and cost for running workloads. By using the rightsizing recommendations you can save up to 25% on EC2 costs.

8. AWS Cost Explorer identifies underutilized EC2 instances that may be downsized within the same instance family and provide forecasted spend based on optimization changes you make.

In summary, with AWS cost and capacity optimization services and tools, you can spend more time building and less time managing EC2 compute costs.