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Alarms Setting on AWS Cloudwatch

From personal experience I tend to go with first warnings at 80% and higher warnings at 90% but a lot depends on how quickly things change. I would test and then make alterations as needed.

If you are using Autoscaling on EC2 I'd recommend scaling at more like 70% or 80% as instances take a time to startup and some servers don't like running at higher CPU like 90% and degrade badly.

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