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Re:

Reduced Amazon EC2 Cloud Pricing: STH’s 2013 Hosting Cost Update

AWS’s 2013 EC2 cuts typically averaged 10–20% for covered instances, but ServeTheHome’s 24-month scenario still estimated $19,000 for EC2 and $8,200 for colocation.
From TheFinanceBase Team2 min to read
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AWS’s February 2013 EC2 price cuts lowered rates for certain older instance families, but ServeTheHome’s updated 24-month model still estimated EC2 hosting at $19,000, compared with $8,200 for colocation. Patrick Kennedy characterized that scenario as a 131% EC2 premium—not a general or current rule about cloud costs.

What AWS reduced in February 2013

Amazon Web Services announced on January 31, 2013, that price reductions would take effect February 1. The changes covered Linux On-Demand instances in the first-generation Standard (M1), second-generation Standard (M3), High Memory (M2), and High CPU (C1) families across regions. AWS said the reductions varied by instance type and region but typically averaged 10–20%. The announcement also lowered prices for data transfer between AWS locations and from AWS regions to CloudFront edge locations. AWS’s January 31, 2013 announcement describes the changes.

How the cut affected ServeTheHome’s hosting comparison

In its February 3, 2013 update, ServeTheHome compared hosting its site on EC2 with a quarter-cabinet colocation option. The article’s 24-month estimate was:

Option Estimated cost over 24 months Basis
Amazon EC2 $19,000 ServeTheHome’s modeled scenario, published February 3, 2013
Quarter-cabinet colocation $8,200 ServeTheHome’s modeled scenario, published February 3, 2013

Patrick Kennedy described EC2 as a 131% premium in that particular comparison. That figure belongs to the article’s assumptions and workload; it is not a market-wide cloud-versus-colocation statistic. See the ServeTheHome cost analysis update.

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Tecmojo 12U Open Frame Network Rack for IT & AV Gear, AV Rack Floor Standing or Wall Mounted,with 2 PCS 1U Rack Shelves & Mounting Hardware,Network Rack for 19" Networking,Audio and Video Device
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What the cost comparison did—and did not—settle

The estimate showed that, in Kennedy’s scenario, the reduced EC2 rates did not erase the gap with colocation. It did not mean EC2 lacked value: the article also identified faster deployment across geographies and built-in scaling as advantages. Those operational benefits may matter when evaluating a hosting choice, but the article did not assign them a dollar value that can be applied to another business.

The totals are historical estimates from 2013, not current AWS quotes or a model for a present-day workload. The article does not establish a current EC2 price, and its 131% result should not be carried forward to a different configuration or period.

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StarTech 42U 4-Post Open Frame Rack, 19in, 22-40in, 1323lb/600kg
  • ADJUSTABLE DEPTH: 4-Post 42U open frame server rack with 4 vertical rails and adjustable mounting depth 22" to 40" (56,0cm to 101,7cm); Compatible with various servers / switches / data / AV and other IT equipment; EIA/ECA-310-E Compliant
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Reserved Instances were a separate change

ServeTheHome noted that the February 1 reduction did not include three-year Reserved Instances. That was accurate for the announcement being discussed, not a statement that Reserved Instance prices never changed: AWS announced separate reductions for new EC2 Reserved Instances on March 5, 2013, for specified families, with the amount varying by family and region. AWS’s March 5 announcement came after the ServeTheHome update.

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What to compare for a current hosting decision

A useful present-day comparison needs a new model with matching workload, geography, and evaluation period. Include the costs and assumptions that differ between an elastic cloud setup and owned or colocated equipment:

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  • Strong Load Capacity: Ground-Mounted Load Capacity: 500 lbs, Wall-Mounted Load Capacity: 150 lbs. The av rack is made of carbon steel for better weldability performance and can help save space while meeting your need to place multiple devices.
  • User-friendly Design: Ergonomic design makes the open frame av rack easier to use. The additional top panel is able to place other items with more available space. Roller design moves anywhere and anytime, is convenient, and is more energy-saving.
  • Complete Accessories: We provide the accessories you need, including 2 x Pallets, 145 x M5*10 Cross Head Screws, 4 x Casters, 4 x M10*50 Expansion Screws,10 x M6*12 Cage Nuts, 1 x Grounding Wire, 1 x User Manual.
  • Wide Application: The server rack wall mount maximizes the use of available space, suitable for retail venues, classrooms, offices, and other places where space is limited.
  • Compute configuration and expected utilization, including periods of scaling up or down.
  • Storage, network transfer, redundancy, and support requirements.
  • Administration and operational labor.
  • For owned or colocated hardware, acquisition, capital, replacement, and contract costs.
  • The business value of rapid deployment and geographic reach, considered alongside direct spending.

The 2013 comparison is useful as a dated example of how a price cut can change an estimate without making two hosting models equivalent. It cannot substitute for current regional rates and workload-specific assumptions.

Best Value
VEVOR 9U Open Frame Server Rack, 23''-40'' Adjustable Depth, Free Standing or Wall Mount Network Server Rack, 4 Post AV Rack with Casters, Holds All Your Networking IT Equipment AV Gear Router Modem
  • Adjustable Depth: Depth adjustable from 23" to 40", this open frame server rack accommodates servers and network equipment while providing ample space for A/V gears and cable management. Enjoy easy access to ports and devices from multiple angles.
  • High Weight Capacity: Supports up to 300 lbs on the floor (200 lbs when adjusted to maximum depth) and 200 lbs when wall-mounted (depth cannot be adjusted in wall-mounted mode). Made from carbon steel for superior welding performance and durability, this open frame rack is designed to save space while accommodating multiple devices.
  • User-Friendly Design: Designed with your convenience in mind, this open frame server rack features an top shelf for extra storage and improved space utilization. The rolling casters let you move it effortlessly wherever you need it, making setup and movement a breeze.
  • Widely Applicable: Maximize your space with this adaptable open frame server rack, designed to make the most of every inch. Ideal for retail spots, classrooms, offices, and any area where space is at a premium, it delivers practical solutions for your storage needs.
  • Everything You Need: Our open-frame rack comes with fully equipped accessory kit for easy setup and secure installation: 2 x Trays, 4 x Casters, 1 x set of Screws, 16 x M6*12 Cage Nuts, 1 x Grounding Wire, 1 x Internal & External Hex Wrenches, and 1 x User Manual.
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AxcessAbles 12U Network Rack with Wheels - 500lb Capacity, 18" Depth | 19-Inch Open Frame AV Rack Case with 3” Caster Wheels | Screws, Spacer, Tool Included
  • Universal 19” Rack Mount Compatibility – Perfect for pro audio, video, IT, and network gear. Compatible with mixers, routers, patch panels, servers, power amps, and more.
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  • All-In-One Setup Kit Included – Comes with 34 rack screws (5mm & 6mm), a 1U blank spacer, and an assembly tool—ready for fast installation out of the box.

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

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