Elastic Compute Cloud

In August 2006, Amazon introduced the EC2 (Elastic Compute Cloud).

Creating virtual machines somewhere across the Internet is what Amazon’s EC2 does. Amazon charges 10 cents for each hour a virtual machine is running. I can cancel or pause at anytime. Coupled with their storage network, it is possible to use precisely the amount of CPU and disk that I need with a remarkably simple setup process. Two minutes after I request my first machine, I’m SSHed into a root shell. My first hour of kicking the tires cost 11 cents. This freedom to experiment makes an enormous difference.

The machine is a virtual instance, with 1.7 Ghz x86 processor, 1.75 GB RAM, 160 GB local disk, and 250 Mb/s of network bandwidth. This costs $0.10/machine/hour. Machines with 4x or 8x specs are available for $0.40 and $0.80.

Persistent storage is independent of the virtual machines for $0.15/GB/month. Transfers within the cloud are free, with data moving between the cloud and the internet costing $0.10/GB on the way in and $0.18/GB for each transferred out. With larger volumes, outbound transfers fall to $0.13/GB.