We have a good idea now on the basics of EC2 and how it can help with any compute needs, like making coffee, or like metaphorically making coffee. The coffee represents the whatever your instance is producing. The next thing we want to talk about is another major benefit of AWS. Scalability and elasticity, or how compacity can grow and shrink based on business needs. Here is the on prem data center dilemma. If your business is like 99 percent of all businesses out in the world, your customer workloads vary over time. Perhaps over a simple 24-hour period. Or you might have seasons where you're busy and weeks that are not in demand. If you're building out a data center, the question is, what is the right amount of hardware to purchase? If you buy for the average amount, the average usage, you won't be wasting money on average. But when the peak loads come in, you won't have the hardware to service the customers, especially during the critical moments that you expect to be making all your results. Now if you buy for the top max load, you might have happy customers, but for most of the year, you'll have idle resources, which means your average utilization is very low. I've seen data centers with average utilization under 10 percent, just out of fear of missing peak demand. How do you solve the problem on-premises? Now the truth is, you can't. Here's where AWS changes the conversation entirely. What if you could provision your workload to exactly the demand every hour, every day? Now you have happy customers, because they can always get the services they want. You have a happy financial officer because they get the ROI your company needs. Here's how it works. Morgan is behind the counter, she's taking orders, and we have a decoupled system. Morgan isn't doing all of the work here, so we need somebody making the drinks. Looks like Rudy's up. Now, the first problem I want to solve is the idea that we plan for a disaster. There's a great quote by Werner Vogels that says, ''Everything fails all the time. So plan for failure and nothing fails.'' Or in other words, we ask ourselves, what would happen if we lost our order taking instance? Well, we'd be out of business until we get another instance up and running. Here is where AWS makes it really simple. Using the same programmatic method we use to create the original Morgan, we can create a second Morgan. If one fails, we have another one already on the front line and taking orders. The customers never lose service. But don't forget about the back end, let's make our processing instances redundant as well. That gets our regular operating capacity. We now have a highly available system with no single point of failure. As long as the number of customers in line stays the same, we're good. But you know that's going to change, right? Let's take a look at what's going to happen when we have a rush of customers, an increase in demand.