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We had this discussion last month about using EC2 for production services. They have dropped their pricing again, so a reserved 'small' instance is now $17.57/month after paying the one-time reservation fee of $160 for a 1-year term. That averages out to about $31/month. Peter Begin forwarded message: From: Amazon Web Services <[log in to unmask]<mailto:[log in to unmask]>> Date: March 6, 2012 3:46:29 AM EST To: "[log in to unmask]<mailto:[log in to unmask]>" <[log in to unmask]<mailto:[log in to unmask]>> Subject: New, lower pricing for Amazon EC2, RDS, and ElastiCache [http://www.amazon.com/gp/r.html?R=39AI26RRIDYF9&C=3A1P6LQ1HVVRH&H=7YRAXSKNDAYZE02FQJGSBCSOPSYA&T=O&U=http%3A%2F%2Fimages.amazon.com%2Fimages%2FG%2F01%2Fnav%2Ftransp.gif] [http://g-ecx.images-amazon.com/images/G/01/webservices/AWS_LOGO._V2289989_.gif]<http://www.amazon.com/gp/r.html?R=39AI26RRIDYF9&C=3A1P6LQ1HVVRH&H=RD1DSYS6HGAQGNIT4KWSX57RS94A&T=C&U=http%3A%2F%2Faws.amazon.com%3Fref_%3Dpe_12300_22960310> Dear Amazon Web Services Customer, We are excited to announce a reduction in Amazon EC2, Amazon RDS, and Amazon ElastiCache prices. Reserved Instance prices will decrease by up to 37% for Amazon EC2 and by up to 42% for Amazon RDS across all regions. On-Demand prices for Amazon EC2, Amazon RDS, and Amazon ElastiCache will drop by up to 10%. We are also introducing volume discount tiers for Amazon EC2, so customers who purchase a large number of Reserved Instances will benefit from additional discounts. Today’s price drop represents the 19th price drop for AWS, and we are delighted to continue to pass along savings to you as we innovate and drive down our costs. All of your On-Demand usage will automatically be charged at the new lower rate as of March 1st. New Reserved Instance prices will only apply to Reserved Instances purchases made on or after March 6th. With the new pricing, Reserved Instances will provide savings of up to 71% compared to On-Demand instances, so you may want to take this opportunity to review your current usage and to determine if you would like to purchase additional Light, Medium, or Heavy Utilization Reserved Instances. Please visit the Amazon EC2<http://www.amazon.com/gp/r.html?R=39AI26RRIDYF9&C=3A1P6LQ1HVVRH&H=8A41IAA2LAD0AVEOSCH1CZMIA2QA&T=C&U=http%3A%2F%2Faws.amazon.com%2Fec2%2Fpricing%2F%3Fref_%3Dpe_12300_22960310>, Amazon RDS<http://www.amazon.com/gp/r.html?R=39AI26RRIDYF9&C=3A1P6LQ1HVVRH&H=XIJESFUZLG5OD5CNDWZYCNPQCKCA&T=C&U=http%3A%2F%2Faws.amazon.com%2Frds%2Fpricing%2F%3Fref_%3Dpe_12300_22960310>, and Amazon ElastiCache<http://www.amazon.com/gp/r.html?R=39AI26RRIDYF9&C=3A1P6LQ1HVVRH&H=GLYVCASAOS6VZPYFJDWG0ZXCN70A&T=C&U=http%3A%2F%2Faws.amazon.com%2Felasticache%2Fpricing%2F%3Fref_%3Dpe_12300_22960310> pricing pages for the complete list of new lower prices and an overview of the new volume discount program. Sincerely, The Amazon Web Services Team We hope you enjoyed receiving this message. If you wish to remove yourself from receiving future product announcements and the monthly AWS Newsletter, please update your communication preferences<http://www.amazon.com/gp/r.html?R=39AI26RRIDYF9&C=3A1P6LQ1HVVRH&H=C3YPF5330PVZ42PVZACPNRQIKCOA&T=C&U=https%3A%2F%2Faws-portal.amazon.com%2Fgp%2Faws%2Fdeveloper%2Faccount%2Findex.html%2F104-4543842-2170300%3Fie%3DUTF8%26action%3Dedit-communication-preferences%26ref_%3Dpe_12300_22960310>. Amazon Web Services LLC is a subsidiary of Amazon.com<http://Amazon.com>, Inc. Amazon.com<http://Amazon.com> is a registered trademark of Amazon.com<http://Amazon.com>, Inc. This message produced and distributed by Amazon Web Services, LLC, 410 Terry Ave. North, Seattle, WA 98109-5210. [http://www.amazon.com/gp/r.html?R=39AI26RRIDYF9&C=3A1P6LQ1HVVRH&H=DBTZL17FPQDDLWDXUZ5MOAFKAXAA&T=E&U=http%3A%2F%2Fimages.amazon.com%2Fimages%2FG%2F01%2Fnav%2Ftransp.gif]