AWS Cost best practices for EC2

Amazon Elastic Compute Cloud (EC2) is a fundamental AWS service that enables users to run virtual servers in the cloud, offering flexibility and scalability. Efficient cost management is vital for maximizing the benefits of EC2, and several best practices can be employed to achieve this. Selecting the appropriate instance type based on application needs and utilizing tools like AWS Compute Optimizer can help balance performance and cost. Spot Instances offer significant cost savings for fault-tolerant workloads, while Reserved Instances and Savings Plans provide discounts for predictable usage. Auto Scaling adjusts instances based on demand, reducing expenses by avoiding idle capacity. Data transfer costs can be minimized by deploying resources within the same region and using caching solutions like Amazon CloudFront. Regularly identifying and turning off unused instances, using hibernation or instance stop features, and leveraging AWS tools like Cost Explorer and AWS Budgets are essential for ongoing cost optimization.