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- Now let's review an introduction to

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Amazon Elastic Compute Cloud, or EC2.

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With EC2, we have the ability
to create virtual machines.

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We call them instances,

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and we have our choice
of Linux or Windows,

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very many flavors of either one.

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Of course, these are powered by either the

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Xen or Nitro hypervisor.

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Up until recently, Xen was
the hypervisor for everything,

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but with some of the later
generations of EC2 families,

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such as the C5 series, M5, R5 series.

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Some of these are now
using the Nitro hypervisor,

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which is more heavily borrowed from KVM,

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and moving away from the Xen hypervisor.

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The benefit of the Nitro hypervisor

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is that it gives us very close
to bare metal performance.

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The overhead of the
virtualization is very, very low

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compared to that with Xen
or other hypervisor's.

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Bare metal is also available.

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So, if you have workloads
that could benefit

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from having access to bare metal,

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without the overhead of a hypervisor,

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that is an option.

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Generally, when we choose
instances within EC2,

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we don't really get to say,

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well, I want this much
CPU and this much memory.

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We choose from sort of a price fixed menu,

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and we do our best to choose

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a machine that gives us a certain

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blend of CPU, memory,
network IO, and so on,

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that will match that particular workload.

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Of course, the beautiful
thing about EC2 is that,

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as we talk about in the very beginning,

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the on demand nature of EC2,

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and the lack of long-term commitments,

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the pay as you go pricing,

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allows us to change our minds, right?

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That's one of the big
benefits of cloud computing,

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is that, we are not
locked in to our decisions

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for a long period of time.

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So, if we try one of these instances,

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and we find that after monitoring

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our application for awhile,

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we find that, that particular
combination of CPU and memory

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doesn't really work that well.

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That perhaps we need more CPU,

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or we need more memory.

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We can throw that machine away,

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and create a new one very easily.

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That really, right there,

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that ability

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gives us a level of
flexibility and agility

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that we've never had before.

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That concept, that ability

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is really the number one driver for

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enterprise adoption of AWS.

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Even above cost savings,

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because we,

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through these kind of things,

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we have access to technology,

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and a way of doing things,

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a way of approaching our infrastructure,

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that we've never had before.

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So,

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with EC2

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we also have the ability

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to launch virtually any
number of instances.

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We can launch one, we
can launch a thousand.

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Of course, within our
current account limit.

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Remember that Amazon services have

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sometimes hard limits,
and sometimes soft limits,

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and the initial soft
limit for EC2 instances

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is somewhere around 20 instances.

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At least at the time of this video.

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So, if you need a thousand instances,

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you can get that by submitting
a ticket to AWS support,

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and asking for an increase in that limit.

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There are different billing models

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we are going to go into in
detail here momentarily.

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Depending on the operating system,

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most operating systems like
Windows and Red Hat and so on,

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will charge by the hour.

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So, the hourly fee in
those cases will include

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the license for the operating system.

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So, if you were to compare
something like Fedora

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with Red Hat, you would see
that the same instance would

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cost more with Red Hat or Windows
than it would with Fedora,

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simply because the hourly fee includes

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a license for the operating system.

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Now, at least at the time of this video,

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for Amazon, Linux, and Ubuntu,

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we actually have per second billing.

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All right?

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So, again, per second billing

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is available for certain
operating systems.

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Not every operating system
qualifies for per second billing.

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Either way, if you're using
an hourly billing model,

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then it's billed hour forward.

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So, what that means is,

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if you run a machine for five minutes,

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you pay for the whole hour.

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If you run it for 61 minutes,

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you pay for two hours.

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With the per second fee,

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it's essentially rounded
up to the next second,

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but there's always a 60 second minimum

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that you have to pay for.

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We also have the AWS marketplace,

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which offers what we might
call, canned solutions.

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So, if you're looking for a
particular type of software,

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say a virtual networking device,

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like some type of a

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virtual Cisco, or a
virtual Palo Alto device,

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or perhaps some type of big data solution.

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There's a lot of different
solutions available

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that are already packaged
as a machine image,

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and already available for us to choose.

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In those cases, the
hourly cost of the machine

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also includes a license for that

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particular piece of software.

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So, the take away from
this lesson is that,

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with EC2 we gain access to

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either virtual machines or bare metal.

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We have the ability to launch one machine

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or a thousand machines or more.

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We have a lot of flexibility

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in terms of operating systems to use,

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and the different billing
models that we'll use.

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Of course, throughout
this lesson we will take a

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closer look at a lot of
details regarding EC2,

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and how we might deploy
applications to those instances.