Cloud computing cost analysis

Table of Contents

Having a server in the cloud scared me at first. It wasn't the fact that being in a multi-tenant environment posed the possibility of others gaining access to my code/files - it was the cost that scared me. Not knowing if I was getting the best deal always plagued my mind. Especially since electricity, a/c, and hardware maintenance were never factored into my budgets it made it hard to justify a server in the cloud when on-premise appeared to be so cheap.

Before I give the table of cost comparisons, I would like to point out that it is 2016. The past several years have seen a stabling of CPU power on the x86 architecture. The benchmarks have been leveling out and the CPU cycles are not really noticeable in a standard web app. I know different cloud providers have different versions of Xeon processors, but for this table, I am just going to label them as a CPU - even if they are vCPUs.

All these prices assume that there is at least 1 TB of transfer a month and 20 GB SSD storage. I found the closest and cheapest solution to the below labels. For the AWS Reserved instances, it is assumed a 1 year full upfront payment.

1 CPU, 512 RAM

HostCost
AWS On-Demand$98.83
AWS Reserved$97.23
Digital Ocean$5
LinodeN/A
RackspaceN/A
GoDaddyN/A
Media TempleN/A
1 CPU, 1024 RAM
HostCost
AWS On-Demand$103.59
AWS Reserved$100.32
Digital Ocean$10
Linode$10
Rackspace$193.36
GoDaddy$24.99
Media TempleN/A
1 CPU, 2048 RAM
HostCost
AWS On-Demand$113.11
AWS Reserved$106.65
Digital Ocean$20
Linode$20
Rackspace$216.72
GoDaddy$29.99
Media Temple$30
1 CPU, 4096 RAM
HostCost
AWS On-Demand$132.14
AWS Reserved$119.24
Digital Ocean$40
Linode$40
Rackspace$263.44
GoDaddy$49.99
Media Temple$50
2 CPU, 2048 RAM
HostCost
AWS On-Demand$170.93
AWS Reserved$139.23
Digital Ocean$20
Linode$20
Rackspace$216.72
GoDaddy$29.99
Media Temple$30
2 CPU, 4096 RAM
HostCost
AWS On-Demand$132.14
AWS Reserved$119.24
Digital Ocean$40
Linode$40
Rackspace$263.44
GoDaddy$49.99
Media Temple$50
4 CPU, 8096 RAM
HostCost
AWS On-Demand$247.06
AWS Reserved$189.98
Digital Ocean$80
Linode$80
Rackspace$356.88
GoDaddy$99.99
Media Temple$100
While some may think - why ever go with AWS when it costs $113.11 for 1 CPU and 2 GB of RAM. Most of the cost is with the 1TB transfer limit. In fact, $92.07 of the cost of every AWS quote is bandwidth and $2 for the storage. In all reality, you will never transfer 1TB from an EC2 instance - you would do it from an S3 bucket (which would be $92.67 - a savings of $1.40). However, if you have less than 6,100,000 requests to your website per month and you are not hosting files over 7mb, then the cost of AWS would be less than $20 - making it the cheapest option.

So the moral of the cloud hosting story is find a host which caters to your biggest need - Bandwidth or compute resources. Once you know that answer, picking an option is easy.

Sources:

https://mediatemple.net/webhosting/vps/developer/https://www.godaddy.com/pro/managed-vpshttps://www.rackspace.com/en-us/calculatorhttps://webcache.googleusercontent.com/search?q=cache:GXODedVaOvoJ:https://www.linode.com/pricing+&cd=1&hl=en&ct=clnk&gl=us&client=ubuntu (linode was down at the time of the writing)https://www.digitalocean.com/pricing/https://calculator.s3.amazonaws.com/index.html

https://technet.microsoft.com/en-us/library/cc785130%28v=ws.10%29.aspxhttp://www.free-webhosts.com/bandwidth-calculator.phphttp://webmasters.stackexchange.com/a/19179