Optimizing Your Amazon Web Services Costs

I’ve been with Amazon for quite a long time now and you must have heard that their web hosting services aren’t very cheap. The average total of one instance per month (including EBS, S3 and all the others) was around $120 at the start. That was back in July 2009 when I had no idea about how all this stuff works. With a lot of experimenting I managed to drop my instance per month costs down by around 40%. Below are a few tips that can help you lower your Amazon Web Services charges:

  • Use reserved EC2 Instances where possible. Amazon charges $0.085 per hour for an m1.small Linux instance in the US, that’s around $61 per month and $734 per year. A reserved instance costs me $227 for one year, plus $0.03 per running hour, that makes it around $490 per year for an m1.small instance. Use reserved instances only if you’re sure that you’ll be using it for a whole year. You can save even more if you purchase a reserved instance for three years.
  • Storage: EBS vs EC2. Pick EC2! That’s right, EC2! EBS charges you for provisioned storage, IO requests and snapshots. These may rise pretty quickly if you’re running MySQL on an EBS block – very risky! Run your MySQL on EC2. The php files and everything else should preferably be on EC2 aswell. You can use your EBS block for tiny backups of core PHP files if you’re running more than one EC2 instance.
  • EBS is cheaper than S3. S3 should only be used in cases where you have to serve your static content from different servers (perhaps through CloudFront), and maybe store some backups there too (don’t forget to remove the old ones!), but EBS is cheaper, even with snapshots.
  • CloudFront is okay. It does speed up your website, but you have to know that it’s more expensive for requests to Japan and Hong Kong

There you go. With these tips you should be able to get the Amazon hosting services for around $90/month, unless of course you have a 3 million visitors per day website ;) Also, for those of you wondering.. I haven’t used RackSpace, but I did compare their prices to Amazon’s and they’re more expensive.