Amazon's EC2 Takes On Web Hosting Market

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Amazon has made a significant and much bolder step into the web hosting arena, extending its Elastic Compute Cloud (EC2) service by introducing Elastic IP Addresses and Availability Zones.
The Elastic IP Addresses allow Amazon Web Services users to set up static IP addresses, making it easy to host websites, web services and other online applications using Amazon EC2. Users can programmatically map the static IP addresses to any of their instances, making it easy to recover from instance failures.


Amazon's pricing for the EC2 service depends on a variety of factors. A single default "small" instance, with 1.7GB of memory and 160GB of storage, costs $0.10 per hour to run, with additional charges for data transfer and unused Elastic IP Addresses. An extra large instance costs $0.80 per hour and features 15GB of memory, 1690GB of storage and 4 virtual cores.
Internet data transfer costs depend upon the direction of the data. All data transfered in is charged at $0.10 per GB, while outwards transfers are $0.18 per GB for the first 10TB of data each month, reducing to $0.13 per GB if 50TB is exceeded.
With EC2's bandwidth costs significantly undercutting many hosting companies, Amazon's latest move will be sending shock waves throughout the conventional hosting industry. It will be interesting to see how the use of Elastic IP Addresses grows, as high bandwidth websites - or even entire hosting companies - are tempted to migrate to a cheaper alternative.


From news.netcraft.com