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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.
The AWS Nitro System isn't a single instance type but a platform that most modern AWS Instance Types are built on. This system is a combination of a lightweight hypervisor, dedicated hardware, and specialized software. It delivers the host hardware's compute and memory resources almost entirely to the EC2 instance, significantly improving performance and security. The vast majority of current-generation AWS Instance Types use the Nitro System, including the latest M7 and C7 series, replacing the older AWS XEN instance types.
Comparing AWS Instance Types is essential for selecting the optimal instance for your specific application needs. Each instance type is optimized for a different workload, with varying balances of CPU, memory, storage, and networking. By comparing these specifications, you can find the ideal mix of resources, avoiding overpaying for unused capacity or under-provisioning your application, which could lead to performance issues. For example, a data analytics application might need a memory-optimized instance, while a high-performance web server may require a compute-optimized one. This comparison process ensures you make a cost-effective and performance-driven decision.
An AWS M7 instance is a high-performance, general-purpose compute instance from the latest generation of AWS Instance Types. These instances are powered by the custom-built AWS Graviton3 processor. M7 instances provide a balanced set of compute, memory, and networking resources, making them suitable for a wide variety of workloads. They are particularly effective for applications that require a high level of performance, such as machine learning, financial trading, and media transcoding. These instances are built on the AWS Nitro System, which enhances their security and performance.
AWS GPU instances are specifically designed for applications that need significant graphics processing or parallel computing power. You launch a GPU instance just like any other Amazon EC2 instance through the AWS Management Console, CLI, or API. The key difference is that you must select a GPU-optimized instance type (e.g., a P-series or G-series instance). After launching, you'll need to install the appropriate drivers for the GPU hardware. These AWS Instance Types are perfect for workloads like machine learning, high-performance computing, 3D rendering, and video encoding.
AWS XEN instance types refers to the older generations of EC2 instances that were based on the open-source Xen hypervisor for virtualization. For many years, Xen was the core virtualization technology for Amazon EC2. However, AWS has since transitioned to its own custom-built AWS Nitro System for all new instances. While some legacy Xen instances might still be available for backward compatibility, the Nitro-based AWS Instance Types are highly recommended for new workloads due to their superior performance, security, and efficiency.
AWS RDS instance types are categories of instances specifically optimized for running relational databases within the Amazon Relational Database Service (RDS). Unlike standard EC2 instances, which are used for general computing, RDS instances are fully managed by AWS to simplify database administration. These AWS Instance Types are tailored for different database workloads, offering various sizes and families, such as burstable performance (T-series), general purpose (M-series), or memory-optimized (R-series). This allows you to choose an instance that aligns with your database's specific performance and resource needs, whether it's for a small application or a large, mission-critical database.
The main difference between these AWS Instance Types is their CPU performance model. Burstable performance instances (T-series) provide a baseline level of CPU performance with the ability to "burst" to a higher level when needed, ideal for workloads with intermittent usage. This is managed by a system of CPU credits. In contrast, fixed performance instances (like C, M, or R-series) provide a consistent, dedicated amount of CPU power at all times. They are designed for workloads that require continuously high CPU performance, such as video encoding, scientific modeling, or high-traffic databases.
AWS Graviton-based AWS Instance Types use ARM-based processors, while traditional instances use x86 processors from Intel and AMD. Graviton instances are custom-designed by AWS to provide a better price-performance ratio for a wide range of cloud workloads, often offering significant cost savings and improved energy efficiency. They are a great choice for applications that are compatible with the ARM architecture. When making an AWS Instance Types comparison, it's crucial to check for application compatibility with ARM.
An AWS Instance Types family is a grouping of instances that share a common set of characteristics and are optimized for a specific type of workload. AWS organizes instances into families to help users easily identify the best fit for their needs. For example, the C-family is for compute-optimized instances, the R-family is for memory-optimized instances, and the T-family is for burstable instances. Understanding these families is the first step in making an effective AWS Instance Types comparison.
Reserved Instances and On-Demand instances are different pricing models for using AWS Instance Types, not different types of instances themselves. On-Demand instances are paid for by the hour or second with no long-term commitment, offering maximum flexibility for short-term or unpredictable workloads. Reserved Instances are a way to reserve capacity for a one- or three-year term in exchange for a significant discount. They are best for stable, predictable workloads that will run for a long period and are a key strategy for cost optimization when using AWS Instance Types.
AWS categorizes its instances into several main families based on their primary use case, which makes AWS Instance Types comparison more straightforward. The main categories include: General Purpose (M, T, and A series), which provide a balance of resources; Compute Optimized (C series), which are ideal for compute-heavy workloads; Memory Optimized (R, X, and Z series), which are designed for memory-intensive applications; Storage Optimized (I, D, and H series), which are best for workloads requiring high read/write access to local storage; and Accelerated Computing (P, G, and F series), which use hardware accelerators like GPUs.
The naming convention for AWS Instance Types follows a specific structure: family.generation.size. For example, in m7i.large, 'm' is the family (General Purpose), '7' is the generation, 'i' indicates an Intel processor, and 'large' is the size. The letters often provide clues about the instance's characteristics. 'g' often means a Graviton processor, 'a' for AMD, 'n' for network-optimized, and 'd' for instances with local NVMe SSD storage. This naming convention is vital for making an informed AWS Instance Types comparison.
For a web server, the most suitable AWS Instance Types are often from the General Purpose family, like the T or M series. T-series instances (e.g., t3.medium) are excellent for web servers with varying traffic because their burstable performance can handle traffic spikes while keeping costs down during low-traffic periods. M-series instances (e.g., m6i.large) are a better choice for web servers with a more consistent, high-traffic load. An AWS Instance Types comparison based on your specific traffic patterns is the best way to choose.
Yes, you can change the AWS Instance Types after launching an instance, a process also known as resizing. You do this by stopping the instance, selecting a new, compatible instance type, and then starting it again. It's important to note that resizing might not be possible for all instances and some compatibility checks are necessary, especially when changing between different virtualization types (e.g., from an older Xen-based type to a Nitro-based type).
Different AWS Instance Types are optimized for specific use cases. General Purpose (M-series) instances are great for web applications and small-to-medium databases. Compute Optimized (C-series) instances are used for high-performance web servers and scientific modeling. Memory Optimized (R-series) instances are designed for in-memory databases and big data analytics. Accelerated Computing (P and G series) instances are for machine learning and deep learning. Storage Optimized (I and D series) are for data warehousing and high-frequency online transaction processing. A thorough AWS Instance Types comparison should always start with understanding your workload's requirements.
The choice of AWS Instance Types is a major factor in your overall AWS bill. Each instance type has a different hourly rate, with pricing varying based on the family, generation, and size. Instances with more vCPUs, memory, or specialized hardware like GPUs will have a higher cost. The pricing model you choose (On-Demand, Reserved, or Spot) also significantly impacts the final cost. To master the financial aspects of using AWS Instance Types, you must not only select the right type but also the most cost-effective pricing model for your workload.
AWS Spot Instance Types are a pricing model that lets you take advantage of unused EC2 capacity in the AWS cloud at a steep discount, often up to 90% off the On-Demand price. The catch is that AWS can reclaim these instances with a two-minute warning if it needs the capacity back. Spot instances are not a separate instance type, but a pricing option available for most AWS Instance Types. They're ideal for flexible, fault-tolerant, and stateless workloads like batch jobs, data processing, and development/testing environments, where interruptions are not a major issue.
A Bare Metal AWS Instance Types is an EC2 instance that allows you to run your application directly on the underlying server hardware, with no virtualization layer. This gives you complete control over the physical resources, including the processor and memory. You'd use a bare metal instance for workloads that require access to the physical server's hardware features (like performance counters), for running specialized hypervisors, or for applications with licensing requirements that don't support virtualization. These are often used for high-performance computing or for legacy applications that cannot be easily migrated to a virtualized environment.
The 'd' in some AWS Instance Types names, such as m5d.large, indicates that the instance includes local instance store volumes, which are NVMe SSDs. These local disks are physically attached to the host server and provide high-speed, low-latency temporary block storage. This is in contrast to instances without the 'd' that rely solely on Amazon EBS (Elastic Block Store) for storage. Instance store volumes are great for workloads that require fast, temporary scratch space, such as caching, temporary files, or data processing.
A course from upGrad on cloud computing or AWS can provide the foundational knowledge needed to effectively understand and utilize AWS Instance Types. Such a program would cover the theoretical concepts behind different instance families, guide you through practical exercises on launching and managing instances, and provide case studies to help you make informed decisions when it comes to AWS Instance Types comparison for real-world scenarios.
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