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"Since the benefit of using EC2 is that you can provision instances elastically" That is certainly a benefit, but I think many would argue that its far from the only benefit.

And as with all EC2 pricing, reservations drop the price substantially. A 1 lease reservation for a "heavy utilization" instance comes out to $7280 per year + $0.621 per hour for a total of $12719

> $7280 per year or $0.621 per hour.

I believe that's $7280/year plus $0.621 per hour, or about a thousand dollars a month amortized over a year.

Good catch, thanks. Updated my original comment

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