Hi@akhtar,
Actually AWS or Openstack uses pre-installed image. They just boot the image and launch one instance. It is also possible to create a .iso file of our current operating system, so that If we format our laptop and install windows 10 again from the created .iso file, we don't need to install the software, which we have installed earlier.
Hope it helps!
Enroll for the AWS Course to learn more about it.
Thanks!