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you wouldn't want to do this straight out of EC2, but once you add S3=>CloudFront to the mix it's much less bad. Only thing you want to be serving from your EC2 boxes and load balancer is gzipped HTML/CSS/JS (could even do CSS/JS on S3/CF if you wanted).

Doesn't CloudFront have the same outgoing bandwidth charge? $0.12/GB? CloudFront does have caching and lessen load on EC2 boxes.

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