What is the term “Tenancy” in AWS VPC

In the context of AWS (Amazon Web Services) VPC (Virtual Private Cloud), the term “tenancy” refers to the tenancy model associated with an Amazon EC2 (Elastic Compute Cloud) instance.

There are two tenancy models available for EC2 instances in AWS VPC:

1. Shared tenancy (default): In this model, EC2 instances run on physical hardware that is shared with other AWS customers. This is known as multi-tenancy, where multiple instances from different AWS accounts can run on the same underlying physical server. The underlying hardware is abstracted, and customers do not have control over specific physical servers.

2. Dedicated tenancy: This model provides dedicated physical servers for your EC2 instances. Dedicated instances run on hardware that is dedicated to a single AWS account, ensuring isolation from other customers. This can be beneficial for workloads with specific compliance requirements or where customers require complete control over the underlying hardware.

It’s important to note that the tenancy model affects the billing and pricing structure. Dedicated tenancy typically incurs additional costs compared to shared tenancy due to the dedicated nature of the hardware resources provided.

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Let’s dive into more details about tenancy in AWS VPC.

In AWS, a Virtual Private Cloud (VPC) allows you to create a private network environment in the cloud. When you create resources within a VPC, such as EC2 instances (virtual servers), you have the option to choose the tenancy model for those instances.

1. Shared Tenancy (Default): Shared tenancy, also known as “default tenancy,” is the most common and cost-effective option. When you choose shared tenancy, your EC2 instances run on physical servers that are shared with other AWS customers. It’s like living in an apartment building where multiple tenants share the same building infrastructure. Similarly, in shared tenancy, multiple customers’ instances share the same underlying physical hardware. However, each customer’s instances are logically isolated from one another.

The shared tenancy model provides several advantages:

  • Cost-effective: Since the underlying hardware is shared, the cost is lower compared to dedicated tenancy.
  • Flexibility: Instances can be easily provisioned and managed without worrying about the underlying hardware.
  • Scalability: You can quickly scale your resources up or down as needed.

2. Dedicated Tenancy: Dedicated tenancy provides dedicated physical servers for your EC2 instances, offering increased isolation and control. With dedicated tenancy, you have two options:

a. Dedicated Instances: In this option, your EC2 instances run on dedicated physical servers that are exclusively allocated to your AWS account. It’s like having your own house where you have complete control over the entire building. Your instances are physically isolated from instances belonging to other customers, providing enhanced security and privacy.

b. Dedicated Hosts: With dedicated hosts, you have even more control over the underlying physical servers. You can allocate an entire physical host to your AWS account, and your EC2 instances run exclusively on that host. It’s like having your own dedicated server in a data center. Dedicated hosts are suitable for scenarios that require host-level isolation, compliance, or licensing considerations.

Dedicated tenancy provides the following benefits:

  • Enhanced isolation and security: Instances running on dedicated hardware are physically isolated from other customers’ instances.
  • Compliance and regulatory requirements: Some industry regulations require dedicated tenancy to meet specific compliance standards.
  • Software licensing: Certain software licenses may require dedicated tenancy to ensure compliance with licensing agreements.

However, it’s important to note that dedicated tenancy is generally more expensive than shared tenancy because you’re paying for exclusive access to the underlying hardware resources.

When choosing between shared tenancy and dedicated tenancy in AWS VPC, consider factors such as security, compliance requirements, performance, and cost to determine the most suitable option for your specific needs.

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1 thought on “What is the term “Tenancy” in AWS VPC”

  1. This blog post on AWS VPC tenancy is a gem! The explanation of both shared and dedicated tenancy models is crystal clear, making it easy to understand for anyone. I appreciate how you’ve covered all the essential aspects, including cost, security, and compliance considerations. It’s evident that you have a deep understanding of AWS, and your writing style is engaging and informative. Looking forward to reading more from you!

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