Even if reserved instances save us 22% over 3 years, it still doesn't even come close. Reserved instances also force me to commit to using a certain type of EC2 instance for 3 years with lots of money upfront. Moreover, IO is ridiculously bad on EC2 and there's nothing that can be done about it. Even RAIDing a gazillion EBS volumes together doesn't do much. I'm glad the truth about how expensive EC2 really is is starting to come out. Hopefully it will force them to revise their pricing, or at least offer more processing power for the same price.
I ran some benchmarks a few weeks ago that show how expensive EC2 really is
Agreed. Here's a good relevant blog post by mark maunder challenging the "cloud hype" http://markmaunder.com/2011/10/31/clouded-vision/
Another thing that is overpriced is the memory , here is a quote from the basecamp's next memory cache article (see the comments section)
They have brought 864GB of RAM that looks like below
Total price was $12,000
Compare that with Amazon :Just checked AWS Elastic Cache’s pricing.
It would cost around 20k / month for ~ 800 GB of Memory. (12 * Quadruple Extra Large nodes / 68 GB)
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