Amazon’s Cloud Is Cheap, But You’re STILL Probably Paying Too Much

April 23, 2012

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So here’s an interesting tidbit about Amazon’s cloud. About half the users of it are overpaying because they signed up for computing power than they really need.

So says data collected by startup NewVem, which has a beta service running called KnowYourCloud. It helps users manage their cloud capacity to save money. NewVem had published a bunch of stats and tips about how to best size Amazon instances to your real needs. An instance is the cloud equivalent to a server.

But we wanted to know how often people were really overspending. So we asked and NewVem looked.

It found that 53% of light AWS users leave more than half their instances idle. That means they are spending for twice as much as much cloud capacity than they really need. Heavy users do a better job. They are wasting less than 10% of their instances.

It only costs between 8 cents (Linux) and 11.5 cents (Windows) per hour for an instance for small users, so the wasted ones don’t really add up to a lot of money. About $138 a month apiece. But if you are a budget-conscious startup, there are better ways to spend that cash.

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