Amazon EC2 Billing and Pricing Models
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Amazon EC2 Billing and Pricing Models

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@AstoundedMahoganyObsidian

Questions and Answers

What is the primary requirement for using a Spot Block?

  • Requires the ability to handle interruptions
  • Requires a minimum of 6 hours of uninterrupted usage (correct)
  • Requires on-demand pricing
  • Requires a commitment of 1 or 3 years
  • Which characteristic distinguishes Dedicated Hosts from Dedicated Instances?

  • Visibility of sockets, cores, host ID (correct)
  • Targeted instance placement
  • Automatic instance placement
  • Per instance billing is available
  • What pricing model allows for the ability to mitigate the risk of being unable to get on-demand capacity?

  • Spot Instances
  • Reserved Instances
  • Dedicated Hosts
  • On-Demand Capacity Reservations (correct)
  • What is true about Dedicated Instances?

    <p>Allow for per-instance billing</p> Signup and view all the answers

    Which of the following is an accurate description of Spot Instances?

    <p>They come with a 2-minute warning before being reclaimed.</p> Signup and view all the answers

    What is a characteristic of Spot Instances in Amazon EC2 pricing?

    <p>They offer discounts of up to 90% for unused capacity.</p> Signup and view all the answers

    Which statement best describes Dedicated Instances in Amazon EC2?

    <p>They provide physical isolation at the host hardware level.</p> Signup and view all the answers

    What is NOT a benefit of using Reserved Instances?

    <p>They allow for on-demand rate adjustments without commitment.</p> Signup and view all the answers

    For which type of workload are Reserved Instances best suited?

    <p>Steady-state and predictable workloads.</p> Signup and view all the answers

    Which of the following statements about Spot Instances is true?

    <p>They provide high discounts based on unused capacity.</p> Signup and view all the answers

    Study Notes

    Amazon EC2 Billing and Pricing Models

    • On-Demand Instances: Flexible billing; terminated at any time; billed per instance.
    • Dedicated Hosts: Physical server dedicated for a single customer; pay per host; ideal for server-bound software licensing.
    • Savings Plans: Commitment to consistent usage (EC2 + Fargate + Lambda); priced at $/hour with 1 or 3-year terms.
    • Billing Structure:
      • Commercial Linux distros billed hourly; minimum 1 hour.
      • Amazon Linux, Windows, and Ubuntu billed per second; minimum 1 minute.

    Amazon EC2 Reserved Instances (RIs)

    • Types of RIs:
      • Standard RI: Fixed term of 1 or 3 years; payment options include All Upfront, Partial Upfront, and No Upfront.
      • Convertible RI: Offers flexibility in terms of instance attributes and payment options.
    • Tenancy Options: Default or Dedicated; discounts applied if attributes match used instances.
    • Availability Zone: Reserves capacity in a specified AZ with discounts applicable across all AZs.

    EC2 On-Demand Capacity Reservations

    • Reserve compute capacity in a specified Availability Zone.
    • Duration is flexible; no term commitments required.
    • Mitigates risk of not obtaining On-Demand capacity; can specify instance attributes.

    AWS Savings Plans

    • Compute Savings Plan: 1 or 3-year commitment; usage across Fargate, Lambda, and EC2 regardless of region or instance size.
    • EC2 Savings Plan: Similar commitment but limited to specific regions and instance families.

    Amazon EC2 Spot Instances

    • Spot Instances: Allows use of unused EC2 capacity at significant discounts.
    • Spot Fleet: Automates management of Spot and On-Demand instances based on target capacity.
    • Spot Block: Reserved for 1-6 hours, at 30%-45% less than On-Demand pricing, ensuring uninterrupted service.

    Dedicated Instances and Dedicated Hosts

    • Dedicated Instances: Hardware isolation at the instance level with per-instance billing.
    • Dedicated Hosts: Per-host billing provides control over resources; visibility of sockets and cores.

    Amazon EC2 Pricing Use Cases

    • On-Demand: Ideal for short, critical projects that cannot be interrupted.
    • Reserved: Best for steady workloads with predictable usage.
    • Spot Instances: Suited for cost-sensitive applications that can handle interruptions.
    • Dedicated Instances/Hosts: Required for security-sensitive applications and continuous demand.

    EC2 Instance Lifecycle

    • States: Includes launching, pending, running, stopping, stopped, hibernating, rebooting, terminating, and retired.
    • Stopping: No charges during stop; EBS volumes still incur charges; retains private IP addresses.
    • Hibernating: Saves RAM contents; EBS volume is restored upon restart.
    • Rebooting: OS reboot; retains DNS and IP addresses; no billing impact.
    • Terminating: Permanently deletes instances with default EBS volume deletion.

    AWS Nitro System

    • Next-gen platform for EC2 instances, enhancing performance and security through dedicated hardware.
    • Provides specialized functionalities like Elastic Network Adapter and support for various instance types, including bare metal.

    AWS Nitro Enclaves

    • Isolated environments for processing sensitive data without external access.
    • Utilizes cryptographic attestation and integrates with AWS Key Management Service for enhanced security.### IAM Permissions Management
    • Permissions should be assigned based on job functions for effective access control.
    • Create IAM policies utilizing Condition elements to restrict access based on source IP addresses.
    • Developers can use access keys for programmatic API access via AWS CLI.
    • Full access for a group to all Amazon EC2 API actions is granted using wildcards in policy (e.g., ec2:*).

    Amazon Elastic Compute Cloud (EC2) Overview

    • EC2 instances can run various operating systems including Windows, Linux, and MacOS.
    • An EC2 instance is a virtual server managed by AWS.
    • EC2 offers a variety of instance types, each with different CPU, memory, storage, and networking capabilities.

    Public, Private, and Elastic IP Addresses

    • Public IP Address:
      • Lost when the instance is stopped, used in public subnets, incurs no charge, and cannot be moved.
    • Private IP Address:
      • Retained when the instance is stopped and used in both public and private subnets.
    • Elastic IP Address:
      • Static public IP, charged if not associated, can be moved between instances and is tied to a private IP.

    Public Subnets and Routing

    • Public subnets allow direct access to the internet through an Internet Gateway (igw-id).
    • Private subnets connect to the internet through a NAT Gateway and maintain internal traffic routing.
    • Route tables define the paths for data packets in the VPC.

    Launching Amazon EC2 Instances

    • Instances launch using Amazon Machine Images (AMIs) that define configuration.
    • Amazon EC2 offers diverse instance families and types, accommodating various performance needs.

    EC2 User Data and Metadata

    • Instance metadata provides information about the EC2 instance accessible at a specific URL.
    • Two versions of Instance Metadata Service (IMDS):
      • IMDSv1: Less secure, older version.
      • IMDSv2: Newer, requires session tokens for enhanced security.

    User Data Configuration

    • User data executes commands upon instance startup and can run scripts on various operating systems.
    • User data must be base64-encoded and is limited to 16 KB before encoding.
    • The provided command can specify user data at launch using AWS CLI.

    Access Keys and IAM Roles

    • Access keys associate with IAM accounts, enabling permission-based access to AWS services.
    • IAM roles can be assumed by EC2 instances without storing credentials on the instance, enhancing security.
    • Using IAM roles prevents the need for managing access keys directly on the instance.

    EC2 Placement Groups

    • Cluster placement groups optimize inter-instance communication by placing instances in close proximity within an Availability Zone.

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    Description

    Explore the various billing and pricing models of Amazon EC2, including On-Demand Instances, Dedicated Hosts, and Savings Plans. Understand the structure of EC2 Reserved Instances (RIs) and learn about the different types and tenancy options available. This quiz will test your knowledge of how AWS charges for its services.

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