I recommend that you start using EBS completely. This means running AMI boot AMI and placing your data (web, database, etc.) on a separate EBS volume (recommended) or even on the root EBS volume. Here's an article I wrote that describes more details on why I feel this way for beginners:
http://alestic.com/2012/01/ec2-ebs-boot-recommended
The specified 850 GB local storage is ephemeral, which means that it can be lost forever if you stop your instance, terminate your instance, or if the instance fails. It might be useful to use for things like large / tmp, but I recommend using ephemeral storage for anything of value.
We also note that 850 GB is not in the same partition, all of them are not tied to the default instance and by default are not fully formatted by the file system.
Eric hammond
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