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Do these price drops ever trickle down to, say, users of heroku? I've not used heroku for very long, but this is the 2nd time since I started that AWS has dropped their prices, however I've heard nary a tale from heroku.


Heroku is a big enough user to negotiate their own prices with Amazon, so I'd guess not.


Just to expand on this, if you spend $2-5 million on reserved instances, you get a standard 20% discount[1]. If you spend more than $5 million, Amazon just say "Contact Us". Heroku certainly qualify for the "Contact Us" discount: at an average of $1,000 per reserved instance, they only need 5,000 servers, yet they're hosting well over 1 million sites.

Heroku provide a service that significantly simplifies the deploy experience, though you pay a premium for that privilege. If you're willing to take the complexity hit of deploying to EC2 instead of using Heroku due to price, you're not really Heroku's target market. I'd expect a price decrease eventually, though likely in reaction to direct competitors rather than the drop in cost of the EC2 infrastructure itself.

[1]: http://aws.amazon.com/ec2/pricing/#reserved-volume-discounts


Heroku only has 5 cents an hour to work with.... their back is kind of against the wall unless they use a whole other billing method.

I would bet the dynos themselves have improved though.




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