Yes, the dedicated servers might be less. But when one of them breaks, I have to wait for the provider to fix it. On EC2, I can replace it in 5 minutes.
> I started out on VPSs and saved a lot moving to dedicated servers once it made sense to. For the dedi servers I use I don't have to pay for RAM monthly, and I get bandwidth at a good price.
EC2 doesn't charge for RAM either and the bandwidth is at a great price.
> The kind of money you're paying on servers is just obscene.
It's really not that much more than other hosting providers, and they offer features that the other ones don't. The two biggest being the speed with which I can add new machines and the speed I can add more disk.
* Layered Tech: $169 (2 TB/month)
* The Planet: $149 (1.5 TB/month)
* Superb Hosting: $119 (2 TB/month)
* Hostway: $99 (2 TB/month)
* Server Beach: $75 (1.2 TB/month)
* Cari.net: $60 (1.3 TB/month)
* Amazon EC2: $244.40
If a dedicated server dies, just spin up some VPSes while you order a new dedicated server or get it fixed :/ It's not a great problem for the rare hardware failure.
The dedicated servers I use get me 5TB transfer for around $100/month. That would cost me around $1,000 on Amazon.
In any event. You're wasting money. Reddit could easily be hosted for $3k/mo or so.