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Amazon Web Services (AWS) offers a wide range of cloud solutions, with EC2 instances at the core of its computing power. AWS instance types are designed to meet different workloads, from general-purpose applications to high-performance computing, memory-intensive tasks, and storage-heavy operations.
In this tutorial, you’ll learn about the main categories, General Purpose, Compute Optimized, Memory Optimized, Storage Optimized, and Accelerated Computing, along with pricing options, bandwidth considerations, and the AWS Instance Type Cost Calculator to guide smarter decisions.
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Let’s start with understanding the different AWS EC2 instance types and how each is tailored for specific workloads.
General Purpose Instances
General Purpose Instances offer a balanced blend of compute, memory, and networking resources. They are typically used for data processing tasks that require additional memory, running small to medium databases, caching fleets, and in backend servers for enterprise applications such as Microsoft SharePoint, SAP, and others. Here are some specifics:
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Features:
Benefits:
Applications:
Compute Optimized Instances, including C4 and C5 instances, are designed for workloads requiring high compute power. They deliver cost-effective high performance at a low price-per-compute ratio, making them ideal for compute-intensive applications.
Features:
Benefits:
Also Read: Top 20 Uses of AWS: How Amazon Web Services Powers the Future of Cloud Computing
Applications:
Memory-Optimized Instances, specifically R4 and R5 instances, are designed for memory-intensive applications that demand faster performance from the memory subsystem. They deliver rapid access to large datasets.
Features:
Benefits:
Applications:
Storage Optimized Instances, like I3 and D2 instances, are optimized for workloads requiring high, write and sequential read access to very large data sets on local storage.
Also Read: AWS Salary in India in 2025 [For Freshers & Experienced]
Features:
Benefits:
Applications:
Accelerated Computing Instances, like G3, P3, and F1 instances, are designed for workloads requiring specialized hardware accelerators, or co-processors.
Also Read: Top 14 AWS Certifications in 2025: Boost Your Cloud Career
Features:
Benefits:
Applications:
AWS offers a range of bandwidth options for different instance types, optimizing the data transfer for diverse needs. Bandwidth types include Low to Ultra High, which is distributed among the different instance types.
Bandwidth Type | Example Instances |
Low | T2 |
Moderate | M5, R5 |
High | C5, M5d |
Ultra High | F1, P3 |
AWS instance types pricing varies depending on several factors such as instance type, size, region, operating system, and purchasing model. AWS offers five primary pricing models:
1. On-Demand Instances: You pay for compute capacity on an hourly or by-the-second basis, with no long-term commitments or upfront payments.
2. Reserved Instances: Provides up to a 75% discount compared to On-Demand instance pricing, with a capacity reservation for the term of the contract.
3. Spot Instances: Allows you to request unused EC2 instances at steep discounts. However, when AWS wants the capacity back, they may interrupt the instances with two minutes of notification.
Also Read: AWS Vs Azure: Which Cloud Computing Platform is Right For You?
4. Dedicated Hosts: A physical EC2 server dedicated for your use. It allows you to use your existing server-bound software licenses and can help reduce costs.
5. Savings Plans: Offers significant savings over On-Demand, similar to Reserved Instances, but allows applications to shift between instance types, use EC2 across regions, and change between compute services.
The AWS Cost Calculator helps users estimate the cost of AWS services more accurately. It's essential to consider instance types, region, data transfer, and other factors. Here are the steps to calculate the cost:
The cost of AWS instance types heavily depends on key factors such as region or product type and project requirements such as compute power or storage. However, it is to be noted that every project’s requirement is different and is very hard to accurately predict future costing models as projects might need more compute power, memory, storage, etc. later on.
Costing can also vary based on several other factors such as the other complementary services you are taking from Amazon such as Amazon Cloudwatch More than anything, the cost of AWS infrastructure and the cloud architecture around it mostly always depends on instance requirements such as if you are looking for Compute Optimized, Memory Optimized, Storage Optimized or HPC Optimized when it comes to your project.
Understanding AWS instance types is fundamental for effective resource and cost management on the AWS platform. By learning about each type, their applications, and pricing, professionals can make more informed decisions when architecting on AWS. To further enhance your AWS skills, consider comprehensive courses on platforms like upGrad.
AWS Nitro Instances are based on the AWS Nitro System, a combination of lightweight hypervisor, and dedicated hardware. It delivers the memory and compute resources of the host hardware to your instances. How does AWS instance types comparison aid in selection?
Comparing AWS Instance Types helps in understanding the resources and benefits of each type, aiding in selecting the optimal instance for specific needs. What is an AWS M7 instance?
AWS M7 instance is a high-performance compute instance powered by the AWS Graviton3 processor. M7 instances are designed for workloads that require high levels of compute, such as machine learning, financial trading, and media transcoding. How to use AWS GPU instances?
AWS GPU instances are used for graphics-intensive applications. You can launch a GPU instance as you would launch any other Amazon EC2 instance. What are AWS XEN instance types?
AWS used to use the Xen hypervisor for virtualization but has been moving towards its own AWS Nitro System. The Xen instances were older instance types. What are AWS RDS instance types?
AWS RDS instance types are categories of instances optimized for different types of database workloads. They range from small to memory or burst performance-optimized instances.
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