EC2 stands for Elastic Compute Cloud and it's a highly configurable server. EC2 allows you to launch VMs.
VM stands for Virutal Machine and it's a computer file usually called an image that acts like a computer. So, its a computer within a computer. You are able to create, copy, resize or migrate your server. You can run multiple VM's on a server to share cost with other customers.
When we launce a VM its called an Instance.
AMI stands for Amazon Machine Image. So when using EC2 you can choose AMI options like:
- The amout of CPU
- The amount of Memory (RAM)
- The amount of Network Bandiwidth
- The Operation System
- Attach multiple virutal HDD's for storage