I don’t understand why someone would choose a dedicated instance over a standard instance in AWS. From what I’ve read, the primary reason seems to be compliance. For example, institutions in healthcare and banking often require their data and applications to be processed on dedicated hardware due to the sensitive nature of their data.

I want to delve deeper into this. Why is this even a concern? Are there specific security reasons why such companies have these policies? If standard instances were used, is there a risk that their data could be accessed or leaked through AWS? (My understanding is that this shouldn’t be the case, as it would imply a vulnerability in AWS’s security.)

I’ve tried searching online but couldn’t find a resource that addresses my question, as it seems to be more about policy rather than technical details.