In the Amazon Web Services (AWS) Cloud, scalable computing capacity is provided by Elastic Compute Cloud (EC2) service. This service eliminates the need to invest in hardware upfront, so you can develop and deploy applications faster.

EC2 is used to launch virtual servers based on your requirement, configure security and networking, and manage storage. EC2 enables us to scale up or down to handle changes in requirements or spikes in popularity, reducing the need to forecast traffic.

Amazon EC2 provides:

• Instances- Virtual computing environments
• Amazon Machine Images (preconfigured templates for instances)- That defines the need for our server (including the operating system and additional software)
• Instance types- Various configurations of CPU, memory, storage, and networking capacity
• Key Pairs- Key pair is used to secure login information for our instances. AWS stores the public key, and the private key is downloaded by the user
• Storage volumes- This volume stores the data temporarily, that's deleted when you stop, hibernate, or terminate any instance