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As per my understanding, a snapshot is a backup of the disk drive and AMI is a backup of the entire instance. So the difference is not that clear to me, Can some provide me the solution?

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You basically take a snapshot of EBS boot volume and then turn it into an EBS boot AMI  by registering with suitable metadata.

Here EBS boot AMI is an EBS snapshot of the root volume with some metadata.

Do checkout AWS Training by Intellipaat to learn more about AWS.

Watch this video tutorial to know more about EBS.

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