Amazon slashes price of dedicated virtual servers by 80 percent

Amazon slashes price of dedicated virtual servers by 80 percent

Summary: Amazon Web Services has lowered the price of renting dedicated virtual server instances on its EC2 compute platform by up to 80 per cent.


Amazon Web Services (AWS) has dropped the price of renting dedicated virtual server instances on its EC2 compute cloud by up to 80 percent.

Dedicated instances allow EC2 customers to run instances on hardware that is reserved just for them. They are aimed at companies which have policies or regulations preventing them from sharing a host server.

The discount applies to on-demand – pay per hour – and reserved instance – discounted hourly rates for a one-time payment - payment options, and is applicable across all supported instance types and all AWS regions.

The largest price drop is in the per region fee, which drops from $10 per hour to $2 per hour in any region where at least one dedicated instance of any type is running.

The hourly costs of dedicated on-demand instances are also reduced by up to 37 per cent. For example, a dedicated instance in the US East (Northern Virginia) Region will drop from $0.84 per hour to $0.528 per hour.

Dedicated reserved instances drop in price by up to 57 percent, which applies to both the hourly instance usage fee and upfront fee. All of the price drops are effective immediately.

Since Amazon launched its public cloud service in 2006 it has lowered the cost of using the platform more than 30 times.

However prices for infrastructure as a service offerings like EC2 are so low that analysts have expressed doubt over whether cost is a deciding factor for companies choosing an infrastructure-as-a-service (IaaS) platform. Instead it is technological features such as elastic load balancing on EC2 or flexibility in how to pay for an instance, which hold more sway, they said.

Topic: Cloud


Nick Heath is chief reporter for TechRepublic UK. He writes about the technology that IT-decision makers need to know about, and the latest happenings in the European tech scene.

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  • Screaming headline v's reality

    "up to" 80%
  • You misunderstand what "reserved" means

    From the EC2 pricing page...

    "Reserved Instances give you the option to make a low, one-time payment for each instance you want to reserve and in turn receive a significant discount on the hourly charge for that instance. There are three Reserved Instance types (Light, Medium, and Heavy Utilization Reserved Instances) that enable you to balance the amount you pay upfront with your effective hourly price."

    It's still a shared server, but you're being charged by the year, not by the minute. It's for companies that want an always-on server, instead of an elastic on-again, off-again cloud.
    • Reserved

      Hi Vineel,
      The article is about a reduction in the price of "dedicated instances" rather than about the "reserved instance" purchasing option.
      Nick Heath