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Turning this around a little: It isn't about the bandwidth limit within the VPC; it is the bandwidth limit on each instance that is the thing to watch. In general, there is no limit on the amount of bandwidth within a VPC.
Check out the EC2 instance specifications - there you'll see that each instance type has specific bandwidth limits.
If an instance is experiencing a high volume of traffic then the ability of that instance to communicate with anything else (other instances; other hosts outside AWS) will likely be impacted.
To answer the questions more specifically:
- No, but if instance B is dependent on instance A to perform its task(s) then there will be an impact but it is not a direct impact, only a consequence of not being able to communicate in a timely manner with instance A. The instance bandwidth available to instance A is separate to that available to instance B.
- See (1).
- See (1).
Just adding some additional context - the potential for 'nosy neighbor' impact exists in any multi-tenanted environment, however AWS has protections at both the internet network border (Shield standard) and in the EC2 border (for east-west traffic) to mitigate such impact.
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Very comprehensive and really helpful, thanks a lot :-)