Soon my website and API will be migrated to Amazon's EC2. Correct my if I'm wrong, but my understanding of an Instance AMI works like:
If I launch an EC2 Instance using a for example Amazon Linux AMI then configure the server to my liking (i.e. install a LAMP stack, setup MySQL databases, etc..) then once completed create an AMI of the Instance. Then I can use the saved AMI to launch more instances using the saved AMI I created, and all future instances I create using the saved AMI will retain all settings that were on the EC2 instance I used to create the AMI.
Is my understanding correct? If I create an AMI of an instance that is fully configured to my liking (installed LAMP stack, MySQL, phpMyAdmin, etc...) then create an AMI for it, I can use the AMI to launch new instances that have the exact same files, options, mysql databases, etc... that were present on the instance used to create the AMI?