Amazon AWS EC2 versus Traditional Hosting Services: A Pricing Analysis
Tags: aws, cloud, devops, web
Published: 2023-05-26 09:00:51

As the digital ecosystem continues to evolve, businesses of all sizes have sought out ways to optimize their online infrastructure, often finding themselves choosing between cloud services like Amazon's AWS EC2 instances and traditional hosting providers. Understanding the cost implications of these services is key to making an informed decision that fits within your budget and supports your goals. In this blog post, we will take a deep dive into the cost differences between AWS EC2 and several popular traditional hosting providers, using three common use cases: running a Wordpress blog, an e-commerce store, and a SaaS platform.

![Uptight finance types worried about their cloud bill](https://dev-to-uploads.s3.amazonaws.com/uploads/articles/122izon8gbnu525r69dk.png)

For our analysis, we're going to look at AWS and seven of its major competitors: OVH, DigitalOcean, Linode, Vultr, Hetzner, Scaleaway, and Dreamhost.

## 1. Wordpress Blog Hosting

| Provider       | Instance Type  | vCPUs | Memory (GB) | Storage (GB) | Instance Cost | Storage Cost (50GB) | Data Transfer Cost (1TB) |
|----------------|----------------|-------|-------------|--------------|---------------|---------------------|--------------------------|
| AWS EC2        | t3.medium      | 2     | 4           | 8            | $40           | $2.50               | $90                      |
| OVH            | VPS Value      | 1     | 2           | 40           | $3.99         | Included            | Included                 |
| DigitalOcean   | Basic Droplet  | 1     | 1           | 25           | $5            | $10                 | Included                 |
| Linode         | Linode 2GB     | 1     | 2           | 50           | $5            | $10                 | Included                 |
| Vultr          | Compute        | 1     | 1           | 25           | $5            | $5                  | $10                      |
| Hetzner        | CX21           | 2     | 4           | 40           | $2.49         | Included            | Included                 |
| Scaleaway      | Start1-S       | 1     | 1           | 20           | $2.99         | Included            | Included                 |
| Dreamhost      | Basic Shared   | Shared| Shared      | Unlimited    | $4.95         | Included            | Included                 |

While AWS EC2 provides an incredibly robust and scalable solution, it can be overkill for hosting a WordPress blog. Traditional hosting providers often provide specialized Wordpress plans at very competitive prices. Even the most cost-efficient EC2 instance is significantly pricier than the competition. For simpler needs, such as running a WordPress blog, traditional hosting providers like OVH, DigitalOcean, Linode, Vultr, Hetzner, Scaleaway, and Dreamhost offer competitive prices and sufficient performance.

## 2. E-commerce Store Hosting

| Provider       | Instance Type  | vCPUs | Memory (GB) | Storage (GB) | Instance Cost | Storage Cost (100GB) | Data Transfer Cost (2TB) |
|----------------|----------------|-------|-------------|--------------|---------------|----------------------|--------------------------|
| AWS EC2        | m5.large       | 2     | 8           | 10           | $120          | $5                   | $180                     |
| OVH            | VPS Comfort    | 2     | 7           | 80           | $22.99        | Included             | Included                 |
| DigitalOcean   | Basic Droplet  | 4     | 8           | 50           | $20           | $20                  | Included                 |
| Linode         | Linode 8GB     | 4     | 8           | 160          | $20           | $20                  | Included                 |
| Vultr          | High Frequency | 2     | 8           | 55           | $20           | $10                  | $20                      |
| Hetzner        | CX41           | 4     | 16          | 80           | $19.90        | Included             | Included                 |
| Scaleaway      | Start1-M       | 2     | 2           | 40           | $17.99        | Included             | Included                 |
| Dreamhost      | VPS Basic      | Unlimited| 1      | 30           | $16.95        | Included             | Included                 |

Running an e-commerce store requires more server resources, particularly if you expect high traffic. AWS EC2 has a reputation for high performance and reliability, making it a strong contender. However, if cost efficiency is a significant factor for you, traditional hosting providers again provide competitive offerings. The prices of these providers vary somewhat, but all are considerably cheaper than AWS EC2 for e-commerce hosting.

## 3. SaaS Platform Hosting

| Provider       | Instance Type   | vCPUs | Memory (GB) | Storage (GB) | Instance Cost | Storage Cost (200GB) | Data Transfer Cost (5TB) |
|----------------|-----------------|-------|-------------|--------------|---------------|----------------------|--------------------------|
| AWS EC2        | c5.xlarge      | 4     | 16          | 20           | $240          | $10                  | $450                     |
| OVH            | VPS Elite       | 4     | 16          | 160          | $60.99        | Included             | Included                 |
| DigitalOcean   | CPU-Optimized   | 4     | 8           | 100          | $80           | $40                  | Included                 |
| Linode         | Dedicated CPU   | 4     | 8           | 160          | $80           | $40                  | Included                 |
| Vultr          | Dedicated Cloud | 4     | 8           | 120          | $80           | $20                  | $50                      |
| Hetzner        | CCX32           | 8     | 32          | 240          | $49.90        | Included             | Included                 |
| Scaleaway      | Start2-L        | 4     | 8           | 80           | $55.99        | Included             | Included                 |
| Dreamhost      | VPS Professional| Unlimited| 4    | 60            | $69.95        | Included             | Included                 |


When it comes to hosting a SaaS platform, the requirements become even more complex. These platforms need strong performance, high uptime, and often require a high level of scalability. AWS EC2 excels in these areas but comes with a higher cost. However, if you're a smaller SaaS company or just starting, other providers like DigitalOcean, Linode, Vultr, and others might offer a better cost-to-performance ratio. 

## Conclusion

While AWS EC2 offers powerful, scalable solutions, its cost can be prohibitive, especially for smaller businesses or projects with straightforward requirements. Traditional hosting providers offer competitive, if not superior, pricing for the most common hosting use cases. However, it's crucial to factor in other considerations such as scalability, features, technical support, and the specific needs of your project. Remember that when it comes to hosting, there is no one-size-fits-all solution, and the best choice will always depend on your unique circumstances and needs.

Keep in mind that prices are always subject to change and it's important to review each provider's pricing and terms to ensure you're getting the most value for your money.