Re:The pros and cons of cloud hosting
by abhaga on Friday December 30, 2011 @02:26PM
(#3408760)
You need to compare costs on the comparable commitment time-frame. You are assuming a 3 year commitment with Amazon. Classic hosting has a monthly commitment.
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I think most dedicated hosting often demands a setup fee of 50$+ or a 1 year commitment.
And even not taking in account the setup fee and the commitment, at 27$/month, you get a lot of power for your buck comparing to the cheapest dedicated server available at maybe something like 60$/month.
Cheapest dedicated box I could quickly find is at 59$/m, and even with a 2 years commitment you get "only" a 25% reduction which put you price at ~45$/m:
The article itself contains a much better example. Setup fee of $65 and then $51/mo for 8GB RAM, 750 GB HD and i7.
http://www.hetzner.de/en/hosting/produkte_rootserver/eq4
Yes, but that dedicated box (even an older/cheaper one) is going to beat the pants of S3's I/O. Apples and oranges.