EC2 Tenancy
Shared Tenancy (Default)
Multiple customers will share the same pieces of hardware but they definitely don't interact with each other.
Dedicated Hosts
With a dedicated host, you purchase an entire physical host from AWS and that host is billed to you on an hourly basis just like EC2 instances are billed.
Once youâve purchased that host, youâre allowed to spin up as many EC2 instances as that host will allow for no additional charges.
You must decide what type of instance that you will be placing on it.
E.g. if you purchased an m4.large host meaning that you could put as many m4.large instances on that host that as you want but you are not allowed to add m3.large or m4.xlarge, etc.
Youâll pay for the whole host so if you arenât fully utilizing them, youâre wasting money.
Dedicated Instances
Youâre still receiving the benefits of having separated hosts from the rest of the AWS customers but you are not paying for the entire host all at once.
You do not need to worry about the capacity of the hosts but youâre being charged a higher rate for the instances.
This type of instance model is similar to the default model where you donât worry about where the instances are, but it does ensure theyâre kept separate.
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