from Hacker News

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

by iworkforthem on 3/6/12, 9:41 AM with 9 comments

Anyone care to explain?
  • by dclaysmith on 3/6/12, 11:17 AM

    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"...
  • by ahi on 3/6/12, 12:25 PM

    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.
  • by hcho on 3/6/12, 2:08 PM

    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.

  • by iworkforthem on 3/6/12, 1:43 PM

    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.

  • by glimcat on 3/6/12, 1:17 PM

    Conditions inside Amazon don't necessarily reflect the state of every business in the industry.
  • by Nicolas___ on 3/6/12, 9:43 AM

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