Amazon Elastic Compute Cloud (EC2) is a web service that provides scalable compute capacity in the cloud, enabling developers to quickly spin up virtual machines. It offers various pricing options (on-demand, reserved, spot, and dedicated), and includes different instance types catering to diverse workloads such as general, compute, memory, GPU, and storage optimization. Additionally, EC2 integrates with Elastic Block Storage (EBS) for data storage and resilience against failures.