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

#1

Post by iworkforthem » Tue, Mar 06, 2012, 9:41 AM UTC

Anyone care to explain?

Re: Why is it that EC2 prices are dropping, but not VPS?

#2

Post by Nicolas___ » Tue, Mar 06, 2012, 9:43 AM UTC

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

Re: Why is it that EC2 prices are dropping, but not VPS?

#3

Post by dclaysmith » Tue, Mar 06, 2012, 11:17 AM UTC

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"...

Re: Why is it that EC2 prices are dropping, but not VPS?

#4

Post by ahi » Tue, Mar 06, 2012, 12:25 PM UTC

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.

Re: Why is it that EC2 prices are dropping, but not VPS?

#5

Post by glimcat » Tue, Mar 06, 2012, 1:17 PM UTC

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

Re: Why is it that EC2 prices are dropping, but not VPS?

#6

Post by TheSmoke » Tue, Mar 06, 2012, 1:42 PM UTC

ahi wrote: post #4

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.

you can always check out intovps.com.

Re: Why is it that EC2 prices are dropping, but not VPS?

#7

Post by iworkforthem » Tue, Mar 06, 2012, 1:43 PM UTC

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.

Re: Why is it that EC2 prices are dropping, but not VPS?

#8

Post by hcho » Tue, Mar 06, 2012, 2:08 PM UTC

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.

Re: Why is it that EC2 prices are dropping, but not VPS?

#9

Post by toomuchtodo » Tue, Mar 13, 2012, 5:39 AM UTC

dclaysmith wrote: post #3

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"...

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.

Re: Why is it that EC2 prices are dropping, but not VPS?

#10

Post by dedward » Tue, Mar 13, 2012, 7:04 AM UTC

hcho wrote: post #8

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.

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