

Why is it that EC2 prices are dropping, but not VPS? - iworkforthem

Anyone care to explain?
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dclaysmith
I think the simple answer would be economies of scale. As more and more
customers sign up, they can drive their per-server costs down significantly.
Their labor cost per customer would also decrease significantly. Meanwhile,
your run-of-the-mill VPS provider is sweating decisions like "do I rent
another rack" or "can I afford to hire another engineer"...

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toomuchtodo
Amazon also gets to subsidize their AWS business with their primary business:
retail logistics. Organizations that do hosting as their primary business do
not have this luxury.

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ahi
Could this be rephrased as, "Why is linode so damn expensive?" I don't know
the answer to that question. Maybe Hurricane Electric is both unreliable and
expensive.

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TheSmoke
you can always check out intovps.com.

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hcho
I am paying about $18 per month for my linode instance. I am not going to
migrate to $10 a month VPS for a saving of $8 per month. Linode knows this and
is under no pressure to drop their prices.

It would be a totally different story of mu hosting needs costed me $1000s.

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dedward
yup....lus linod is notthe same as ec2. linode has zn awesome track re
ordnfirmthings it is go od at,,,m,nthe pricebis right.

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iworkforthem
Hardware are getting cheaper & faster. The same is with Storage.
Virtualization Tools & OS are mostly free. Worst if I compare the US VPS
prices against those in Europe. E.g HostEurope or Leaseweb.

VPS just dun make any sense.

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glimcat
Conditions inside Amazon don't necessarily reflect the state of every business
in the industry.

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Nicolas___
You have to be more specific about the VPS part of your question...

