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In AWS, tags are key value pairs of text that can be attached to many different resources, with EC2 being the most commonly used. Common tags include name, environment, and team. Tags are used for resource grouping, automation, and cost allocation. It is recommended to use as many tags as possible on instances. Resource groups can be created and managed in Amazon Systems Manager using these tags, allowing for logical grouping of resources such as applications or different layers of an application.
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