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School of Data & Tech

Cloud Services in Practice: compute, storage and cost

Step 6 of 8 in Tech Lab

Next in your path: 7.8.3 Security for Teams: risk reviews and incident plans

What you'll be able to do
  • Launch, stop and delete a virtual machine and explain what you are billed for in each state.
  • Protect a virtual machine with a firewall rule (security group) that only lets in the traffic you choose.
  • Choose a storage class or tier for files, set a lifecycle rule and keep storage private.
  • Use roles and least privilege instead of long-lived keys.
  • Explain the main ways cloud compute is paid for, and the hidden charges to watch.
  • Set budgets, tags and alarms, read a cloud bill and run a clean-up checklist.

Education only. This course shows how the services work. It gives no prices (they change), so always check the official pricing page of your provider before you build.

Words in this course 50Open the Vocabulary Hall
01

Launching a virtual machine

In simple words

Renting a virtual machine is like renting a computer from a computer shop. You pick the size, pick what is installed on it, and turn it on. While it is on, the meter runs. When you are done you must give it back, or the shop keeps charging you.

Key facts
  • Before this course: Cloud Basics (course 7.9). You should know IaaS, regions, the shared responsibility model and the free-tier warning. This course goes hands-on.
  • A virtual machine has different names: Amazon EC2 instance (AWS), Virtual Machine (Azure) and Compute Engine VM (Google Cloud).
  • On AWS, you choose two main things when you launch an instance:
  • an AMI (Amazon Machine Image): the template with the operating system, like Amazon Linux or Windows;
  • an instance type: the hardware, which sets the CPU, memory, storage and network capacity.
  • Instance types are grouped in families. AWS lists general purpose, compute optimized, memory optimized, storage optimized, accelerated computing and high-performance computing. Each type has several sizes, so you can scale up or down. AWS names are built from the family, generation, processor family, capabilities and size.
  • You can change the instance type later. AWS suggests testing with your own app, because you pay by the second and testing several types is inexpensive.
  • AWS EC2 instance states and billing (from the EC2 documentation):
StateMeaningIs instance usage billed?
pendingStarting upNo
runningReady to useYes, per second, with a one-minute minimum, even if idle
stopping / stoppedShut down, can be started againNo for instance usage, but you still pay for attached EBS storage
shutting-down / terminatedPermanently deletedNo
  • Stop keeps the machine so you can start it again. Terminate deletes it for good. You cannot recover a terminated instance.
  • By default AWS deletes the root volume when you terminate, and keeps any other EBS volumes. Data on instance store volumes is erased when you stop or terminate.
  • A stopped instance gets a new public IPv4 address when it starts again (unless you use an Elastic IP address). A reboot keeps it.
Step by step
  1. Sign in to your own cloud account with MFA on. Open the compute service (on AWS, EC2; names can differ by version).
  2. Check the Region at the top of the console. Pick a region near you or where your data must stay (for example a Canadian region for Canadian data; see course 7.9).
  3. Click Launch instance. Give it a name, for example practice-vm.
  4. Pick an operating system image (AMI). Choose one marked free-tier eligible if your account shows that label.
  5. Pick the smallest instance type your account offers for your plan.
  6. Create a key pair or use the browser-based connect option your console offers. Never share the private key file.
  7. Keep the default storage size, and do not open the network to everyone (the next lesson explains why). Click Launch.
  8. Wait until the state shows running. Then Stop the instance, see the state change to stopped, and finally Terminate it.
  9. Check: the console shows terminated, and under Volumes there is no volume left over.
Watch on YouTube
Launching, configuring, connecting and using an EC2 instanceAcademind · YouTube · youtube.com

Videos by other creators on YouTube, for reference. They are not made by or affiliated with The Future Market.

LESSON 01Launching a virtual machine
LESSON 01 / ANIMATED LESSON / AI VOICE00:00 / 01:15
Read the video script
[Host] "In the cloud you can rent a computer in two minutes. The skill is knowing what it costs while it is on."
[Screen: Launch instance form with name, AMI and instance type] "Pick an image, the operating system. Pick a size, the hardware. Name it. Launch."
[Text on screen: running = billed. stopped = not billed, but storage is. terminated = gone.] "Running means the meter is on. Stopped means no instance charge, but the disk still costs. Terminated means gone for good."
[Host] "When you finish practising, terminate it. Then check that nothing is left."
Try it now

Launch a tiny practice virtual machine on a free-tier account, stop it, start it, and terminate it. Write down the state names you saw and what is billed in each state. Then check the Volumes list and confirm it is empty.

ClaudeStuck? Copy a ready-made prompt for Claude

Copy this, open Claude, paste it, and Claude will walk you through the lesson step by step.

For a grown-up: Claude is for adults (18+). Copy this, paste it into Claude, and use the answer to explain the lesson to your child.

I'm learning "Cloud Services in Practice: compute, storage and cost" on The Future Market. Lesson 1: "Launching a virtual machine".

What the lesson teaches:
- Before this course: Cloud Basics (course 7.9). You should know IaaS, regions, the shared responsibility model and the free-tier warning. This course goes hands-on.
- A virtual machine has different names: Amazon EC2 instance (AWS), Virtual Machine (Azure) and Compute Engine VM (Google Cloud).
- On AWS, you choose two main things when you launch an instance:
- an AMI (Amazon Machine Image): the template with the operating system, like Amazon Linux or Windows;
- an instance type: the hardware, which sets the CPU, memory, storage and network capacity.
- Instance types are grouped in families. AWS lists general purpose, compute optimized, memory optimized, storage optimized, accelerated computing and high-performance computing. Each type has several sizes, so you can scale up or down. AWS names are built from the family, generation, processor family, capabilities and size.
- You can change the instance type later. AWS suggests testing with your own app, because you pay by the second and testing several types is inexpensive.

The exercise I'm working on:
Launch a tiny practice virtual machine on a free-tier account, stop it, start it, and terminate it. Write down the state names you saw and what is billed in each state. Then check the Volumes list and confirm it is empty.

I'm stuck. Please:
1. Explain the main idea in plain, simple words with one everyday example.
2. Walk me through the exercise one small step at a time. Ask me what I've done so far before giving the next step.
3. Don't just give me the final answer. Help me do it myself, and check my work when I share it.
I'm a parent helping my child (about 8 years old) with a lesson called "Launching a virtual machine" from the course "Cloud Services in Practice: compute, storage and cost".

Here's what the lesson says:
Renting a virtual machine is like renting a computer from a computer shop. You pick the size, pick what is installed on it, and turn it on. While it is on, the meter runs. When you are done you must give it back, or the shop keeps charging you.

The activity:
Launch a tiny practice virtual machine on a free-tier account, stop it, start it, and terminate it. Write down the state names you saw and what is billed in each state. Then check the Volumes list and confirm it is empty.

Please explain this so an 8-year-old understands: short sentences, a fun everyday example, and no hard words.
Then give me 3 simple questions I can ask my child to check they understood, and a way to do the activity together, one tiny step at a time.
Open Claude
Sources
My notes
02

Networks and firewalls for your machine

This lesson is part of full access: every course and every level for one payment.

03

Object storage in practice

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04

Identity in practice: roles, not keys

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05

How cloud compute is paid for

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06

Budgets, tags and reading your bill

This lesson is part of full access: every course and every level for one payment.

07

Monitoring, alarms and the clean-up routine

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++

Final project

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??

Quiz

  1. In which EC2 state is instance usage billed?

  2. What is the difference between stopping and terminating an instance?

  3. What does an AMI contain?

  4. What does a default AWS security group do with incoming traffic that no rule allows?

  5. Why should you not allow SSH from 0.0.0.0/0?

  6. Which storage class or tier fits data used about once a month?

  7. What are the two kinds of S3 Lifecycle actions?

  8. Why use an IAM role instead of an access key on a virtual machine?

  9. What is least privilege?

  10. Name two common leftovers that still cost money after you delete an instance.

  11. Does a budget alert stop spending?

  12. What must you do before an AWS cost allocation tag shows in Cost Explorer?

EX

Final exam

This lesson is part of full access: every course and every level for one payment.

CE

Certificate

This lesson is part of full access: every course and every level for one payment.