cloudformation best practices in AWS

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We are at early stages with running our services on AWS. We have our server hosted in AWS, in a VPC, having private and public subnets and have multiple instances in private and public subnets using ELB and autoscaling setup (using AMIs) for frontend web servers. The whole environement(VPC, security groups, EC2 instances, DB instances, S3 buckets, cloudfront) are setup manually using AWS console at first. Application servers host jboss and war files are deployed on the servers.

As per AWS best practices we want to create whole infrastructure using cloudformation and have setup test/stage/prod environment.

-Would it be a good idea to have all the above componenets (VPC, security groups, EC2 instances, DB instances, S3 buckets, cloudfront etc) using one cloudformation stack/template? Or we should we create two stacks 1) having network replated components and 2) having EC2 related components?

-Once we have a prod envoronemtn running with cloudformation stact and In case we want to update the new AMIs on prod in future, how can we update the live running EC2 instances using cloudformation without interruptions?

-What are the best practices/multiple ways for code deployment to multiple EC2 notes when a new release is done? We dont use Contineus integration at the moment.

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It's a very good idea to separate your setup into multiple stacks. One obvious reason is that stacks have certain limits that you may reach eventually. A more practical reason is that you don't really need to update, say, your VPC every time you just want to deploy a new version. The network architecture typically changes less frequently. Another reason to avoid having one huge template, or to make changes to an "important" template needlessly, is that you always run the risk of messing things up. If there's an error in your template and you remove an important resource by accident (e.g. commented out) you'll be very sorry. So separating stacks out of sheer caution is probably a good idea.

If you want to update your application you can simply update the template with the new AMIs and CFN will know what needs to be recreated or updated. You can read about rolling updates here. However, I'd recommend considering using something a bit more straightforward for deploying your actual code, like Ansible or Chef.

I'd also recommend you look into Docker for packaging and deploying your application's nodes. Very handy.