Monthly Archives: December 2008

Amazon EC2 is too expensive for startups

I’ve just read this article regarding the Amazon Web Services Startup Challenge and I was all eager to give EC2 a try. To be honest, I have heard about Amazon Web Services for quite sometime now, but finally I thought it was time to have a look. The motivation was the fact that I have tried Stax Cloud and noticed it is build on top of Amazon EC2 (Elastic Compute Cloud). I quickly signed up using my existing account hoping there would be a trial or some sort of free access for developers, I was wrong. As soon as I tried to signup for EC2 & S3 I was asked to confirm my credit card details, so I stopped there and had a quick look at the pricing.

Using Amazon’s pricing calculator I tried to enter the same specifications offered by a PoundHost A2 dedicated server and to my shock Amazon EC2 monthly pricing was three times that of PoundHost A2 dedicated server. So what I don’t understand is how would a startup be able to afford using a more expensive service such as EC2?, may be it’s the buzz word ‘Cloud’ and lots of cash coming out of VC funding rounds!

Personally I think Amazon is still got a great deal to do in regards to pricing if they want to compete with the dedicated server hosting market.