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Ans. In terms of compute options and configurations, Reserved Instances and On Demand instances are the same. The only difference between the two is that a Reserved Instance is one you rent (reserved) for a fixed duration, and in return you receive a discount on the base price of an On Demand instance.
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Ans. It's a configuration for auto scaling environment that specify the attributes / conditions for scaling instances up and down. For example - We may like environment to scale up when the number of requests / sec increases a particular threshold and scale down when it decreases below a threshold.
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Ans. Amazon Elastic Compute Cloud or EC2 provides scalable computing capacity in the AWS cloud. It can be used to create Virtual Environments , storage and configure. EC2 enables to upgrade or downgrade infrastructure according to the rules defined ( with fluctuation in latency, traffic etc )
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