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How to Upgrade an EC2 Instance from Old Generation to Modern Type

This tutorial demonstrates how to upgrade an EC2 instance from an older generation instance type (t2.micro) to a modern equivalent (t3.micro), achieving approximately 10% cost savings with equal or better performance.

Cost Impact​

Upgrading from t2.micro to t3.micro provides approximately 10% cost savings:

  • t2.micro: $8.47/month ($0.0116/hour)
  • t3.micro: $7.59/month ($0.0104/hour)
  • Savings: ~$0.88/month per instance

For larger instance types (e.g., t2.large → t3.large), savings can reach $7-10/month per instance.

Prerequisites​

  • An EC2 instance running on an older generation instance type (e.g., t2.micro)
  • AWS Console access with permissions to stop/start instances and modify instance types
  • The instance must be in a stopped state to change its type

Step 1: Navigate to EC2 Instances​

Navigate to the EC2 Instances console to view your running instances.

Step 2: Select the Target Instance​

Select the instance you want to upgrade by clicking its checkbox. In this example, we're upgrading instance i-0c2456bcc8f3c3f16 running on t2.micro.

Select instance

Step 3: Stop the Instance​

Before changing the instance type, you must stop the instance:

  1. Click Instance state → Stop instance
  2. Confirm the stop action by clicking Stop in the dialog

Note: The instance will be briefly unavailable during this operation, typically taking 30-60 seconds to stop completely.

Stop instance

Step 4: Wait for Instance to Stop​

Wait for the instance state to change to Stopped. You can refresh the page to check the current state.

Step 5: Change Instance Type​

With the stopped instance selected:

  1. Click Actions → Instance settings → Change instance type

Change instance type menu

Step 6: Select the New Instance Type​

In the "Change instance type" dialog:

  1. Click the New instance type dropdown
  2. Type or select t3.micro
  3. Review the comparison table showing:
    • On-Demand Linux pricing: t2.micro ($0.0116/hour) vs t3.micro ($0.0104/hour)
    • vCPUs: t2.micro (1 vCPU) vs t3.micro (2 vCPUs)
    • Network performance: t2.micro (Low to Moderate) vs t3.micro (Up to 5 Gigabit)

Select t3.micro

  1. Click Apply to save the instance type change

Step 7: Start the Instance​

Return to the instances list and start the instance:

  1. Ensure the instance is selected
  2. Click Instance state → Start instance

Start instance

Step 8: Verify the Upgrade​

Wait for the instance to reach Running state and verify:

  • Instance type shows t3.micro
  • Instance is running normally with a public IP address

Verify upgrade

The upgrade is complete! Your instance is now running on the modern t3.micro instance type with improved performance and cost savings.

Alternative Approaches​

AWS CLI​

You can perform this upgrade programmatically using the AWS CLI:

# Stop the instance
aws ec2 stop-instances --instance-ids i-0c2456bcc8f3c3f16

# Wait for the instance to stop
aws ec2 wait instance-stopped --instance-ids i-0c2456bcc8f3c3f16

# Change instance type
aws ec2 modify-instance-attribute --instance-id i-0c2456bcc8f3c3f16 --instance-type t3.micro

# Start the instance
aws ec2 start-instances --instance-ids i-0c2456bcc8f3c3f16

# Wait for the instance to start
aws ec2 wait instance-running --instance-ids i-0c2456bcc8f3c3f16

Infrastructure as Code​

Update your CloudFormation templates or Terraform configurations to use modern instance types:

CloudFormation:

InstanceType: t3.micro  # Changed from t2.micro

Terraform:

instance_type = "t3.micro"  # Changed from "t2.micro"

Additional Considerations​

  • Reserved Instances: If you have t2 Reserved Instances, evaluate whether the savings from upgrading outweigh the RI commitment
  • t3a alternative: Consider t3a instances for an additional 10% savings if AMD processors are acceptable for your workload
  • Graviton instances (t4g): For compatible workloads, t4g instances offer an additional 20% savings beyond t3
  • Burstable performance: Both t2 and t3 are burstable instances. Ensure your workload doesn't require sustained CPU performance, or consider non-burstable instance types like m5 or c5

Summary​

By upgrading from t2.micro to t3.micro, you've achieved:

  • ✅ 10% cost savings (~$0.88/month per instance)
  • ✅ Better network performance (up to 5 Gigabit vs Low-Moderate)
  • ✅ 2 vCPUs instead of 1 (when burst credits are available)
  • ✅ Modern instance generation with better underlying hardware