Amazon web services cost comparison example for web

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Amazon Web Services Cost Comparison Example for Web Hosting with Occasional Traffic Spikes

February 2010

Web Hosting with Occasional Traffic Spikes

Use Case: Relatively low steady state usage, with occasional need for sufficient resources to handle traffic spikes. Traditional co-located data center model requires planning for peak usage, resulting in significant idle capacity a majority of the time.

EC2 helps maximize capacity through on-demand usage of computing resources

Peak usage

Avg. usage


Capacity wasted with traditional IT infrastructure


20 Actual usage



? 20 servers running constantly at 100% full capacity ? 200 servers needed during occasional traffic spikes,

with average annual utilization of only 20% ? 10 GB average monthly data transfer "in" and 50 GB

average monthly data transfer "out" per instance ? Region: US East (Northern Virginia) ? Operating System: Linux/Unix

Note: These assumptions are used for demonstration purposes only. You may input your own assumptions in the Amazon EC2 Cost Comparison Calculator for an accurate cost comparison based on your own use case and computing needs.

Co-Located Data Center

Server Hardware Network Hardware Hardware Maintenance Co-Location Expense Remote Hands Support

Data Transfer Total

Annual Cost $26,620 $5,324 $9,583

$274,293 $3,300 $9,401


Amazon EC2*

Instance Hours Data Transfer

Annual Cost $44,554 $5,400



*Amazon EC2 costs are calculated based on the On-Demand pricing structure. Further savings may be possible by using Reserved Instances.


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