Why Are AWS EC2 Instances So Pricey Compared to Other Providers?

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Asked By CloudyNimbus42 On

I'm looking into using AWS for a virtual machine to install Prometheus, but I've noticed that the costs are significantly higher compared to smaller providers like Netcup or STRATO, where a 4GB RAM instance goes for around 4€ per month. Even with reserved instances, AWS ends up being three times as expensive. I'm trying to figure out why AWS has such high pricing and whether it can be justified. I wanted to keep everything on the same provider, but I'm really puzzled by these costs. Any insights would be appreciated!

3 Answers

Answered By TechSavvyBee23 On

AWS operates on a pay-per-use model, while smaller providers often have lower overhead with basic infrastructure. Think of it this way: 4€ a month sounds cheap, but you're getting what you pay for.

Answered By ServerGuruX9 On

One big factor is that EC2 offers a range of features and seamless integration with other AWS services that smaller providers might not have. If you don't need all that, a simpler VPS might be a better value for you.

Answered By DataWhizKid72 On

Smaller VPS hosts often run minimal setups with lots of oversubscription to keep costs down, while AWS is built for serious scalability and reliability, which you pay more for. Just keep in mind that AWS pricing varies worldwide, depending significantly on local electricity prices. For low-end needs, AWS might not be your best option.

Also, even an empty VPC on AWS can end up costing hundreds per month if not managed correctly. So, it’s really about what you need and expect from your service. They cater primarily to large businesses, which is where they can justify those higher prices.

CuriousCat77 -

Thanks for breaking it down! That's super helpful.

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