Amazon Web Services recently introduced T2 instances, a new EC2 instance offering for applications that do not require sustained high CPU performance. The T2 instances constitute the cheapest instance available on the EC2 platform with prices starting at $0.013/hour. T2 instances deliver a baseline CPU in conjunction with the capacity to “burst” above the baseline. The baseline CPU level and bursting ability are determined by “CPU Credits” that instances can accrue when they are idle. The more the CPU is idle, the greater the ability of the T2 instance to burst above its baseline capacity. The T2 instances are ideal for web servers, small databases and development environments that sparingly use the full capacity of the CPU. Applications with high, consistent CPU needs such as computationally intensive applications or applications leveraging streaming data will require fixed performance EC2 instances in contrast to the burstable performance instances specific to the T2 instance. T2 instances are available in micro, small and medium sizes with 1, 2 and 4 GB of memory respectively. Overall, the T2 instance offering positions Amazon even more strongly with respect to its competitors in catering to the needs of organizations with low CPU needs in general, but that “require the full CPU resources for short bursts,” according to Matt Garman, VP of Amazon EC2 at Amazon Web Services.