We have some experience with this. Our ftp site, which accounts for 80% of our 
traffic, has been on a t1.micro instance, their smallest, for $.007 an hour. 
With the $54 reservation fee, it is about $115 a year ($266 for 3 years) plus 
$.12 per gigabyte for outgoing traffic. The cost of bandwidth is considerably 
lower than we can get with a local carrier, and this is the major factor 
driving us to the cloud. We also have a CTAN mirror site that we run for the 
benefit of TeX users, and it sends out about 2 terabytes a month, which dwarfs 
the cost of running the machine. (I'm not counting the CTAN traffic when I say 
our ftp traffic is 80% of the total).

Gradually we are moving our website, forums, and build machines (except for the 
Mac) to a virtual private cloud inside the Amazon cloud. In spite of the 
stories you read in the press about outages at Amazon, their uptime percentage 
has quite a few more 9's than what we have done on our own. We are using EC2, 
S3, Route 53(DNS server), and VPC services at AWS.

--Barry


On Feb 1, 2013, at 9:48 AM, Owen Densmore wrote:

> Amazon AWS is introducing new reduced pricing.  What's interesting is that it 
> is based, apparently, on their data center upgrade strategy!  "Older" 
> instances have their prices reduced .. thus I guess its a way of managing the 
> replacement older hardware!
>      http://aws.amazon.com/ec2/pricing/#reserved
> 
> I recall in the past calculating their charges being over $60/mo.  Now you 
> can reserve their entry level systems for $69/year!  That's getting tempting, 
> even for just moving my blog there.
> 

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