Answer / Rajander Kumar

A placement group allows EC2 instances to be launched in a manner that can help improve network performance, reduce the likelihood of traffic congestion, or meet other specific placement requirements. Placement groups are beneficial when:

1. You have multiple instances communicating with each other frequently and want to reduce network latency.
2. You need to place your instances on the same host or rack for reduced network latency.
3. You want to launch instances that should not be co-located with other instances due to licensing constraints.

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