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Amazon Fashion Elastic Compute Cloud (EC2) is a part of Amazon.com's cloud-computing platform, Amazon Web Services (AWS), that allows users to rent virtual computers on which to run their own computer applications. EC2 encourages scalable deployment of applications by providing a web service through which a user can boot an Amazon Machine Image (AMI) to configure a virtual machine, which Amazon calls an "instance", containing any software desired. A user can create, launch, and terminate server-instances as needed, paying by the second for active servers - hence the term "elastic". EC2 provides users with control over the geographical location of instances that allows for latency optimization and high levels of redundancy. In November 2010, Amazon switched its own retail website platform to EC2 and ozma.one AWS. On May 29, 2008, two more types were added, High-CPU Medium and High-CPU Extra Large. There were twelve types of instances available. IP addresses, availability zones, Deals and user selectable kernels. This provides persistent storage, a feature that had been lacking since the service was introduced.

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Amazon EC2 was developed mostly by a team in Cape Town, South Africa led by Chris Pinkham. Pinkham provided the initial architecture guidance for EC2 and then built the team and led the development of the project along with Willem van Biljon. Initially, EC2 used Xen virtualization exclusively. C5 family of instances that were based on a custom architecture around the KVM hypervisor, called Nitro. Each virtual machine, called an "instance", functions as a virtual private server. Amazon sizes instances based on "Elastic Compute Units". The performance of otherwise identical virtual machines may vary. On November 28, 2017, AWS announced a bare-metal instance type offering marking a remarkable departure from exclusively offering virtualized instance types. On-demand: pay by the hour without commitment. Reserved: rent instances with one-time payment receiving discounts on the hourly charge. Spot: bid-based service: runs the jobs only if the spot price is below the bid specified by bidder.

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The spot price is claimed to be supply-demand based, however a 2011 study concluded that the price was generally not set to clear the market, but was dominated by an undisclosed reserve price. 0.0058 per hour ($4.176 per month) for the smallest "Nano Instance" (t2.nano) virtual machine running Linux or Windows. Storage-optimized instances cost as much as $4.992 per hour (i3.16xlarge). 2.50 per month for a three-year prepaid plan. EC2 costs can be analyzes using the Amazon Fashion Cost and Usage Report. There are many different cost categories for EC2 including: hourly Instance Charges, Data Transfer, EBS Volumes, EBS Volume Snapshots, and Nat Gateway. The credits are designed to run a "micro" sized server, storage (EBS), and bandwidth for one year. Unused credits cannot be carried over from one month to the next. Reserved instances enable EC2 or RDS service users to reserve an instance for one or three years. The corresponding hourly rate charged by Amazon to operate the instance is 35 to 75% lower than the rate charged for fantasyroleplay.co on-demand instances.


Reserved instances can be purchased with three different payment options: All Upfront, Partial Upfront and No Upfront. The different purchase options allow for different structuring of payment models, with a larger discount given to customers that pay their reservation upfront. Reserved Instances are purchased based on a resource commitment. These reservations are made based on an instance type and a count of that instance type. For example, you could reserve 100, i3.large instances, for a 3-year term. In September 2016, AWS announced several enhancements to Reserved instances, introducing a new feature called scope and a new reservation type called a Convertible. Cloud providers maintain large amounts of excess capacity they have to sell or risk incurring losses. Amazon EC2 Spot instances are spare compute capacity in the AWS cloud available at up to 90% discount compared to On-Demand prices. As a trade-off, AWS offers no SLA on these instances and customers take the risk that it can be interrupted with only two minutes of notification when Amazon needs the capacity back.

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