Your parent is [rightfully] including bandwidth. <i>If</i> he was able to get 1gbps unmetered, then the math is in the right ballpark (that&#x27;s a huge <i>if</i> though).<p>Still, I agree with the parent&#x27;s general sentiment re price. The gap used to be much worse, but it&#x27;s still anywhere from 2x-20x depending on what you&#x27;re doing.<p>- EC2 prices are simply high and exclude things like bandwidth.<p>- The CPUs are usually 1-3 generations behind (they&#x27;ve gotten better with this).<p>- Virtualization adds overhead (again, this can be very significant if you&#x27;re doing a lot of system calls)<p>- IO options are significantly worse<p>- Their network connectivity is, at best, average<p>You said it yourself, you&#x27;re comparing a &quot;terrible&quot; deal to AWS and only saved 20%. Sounds to me like AWS is only 20% better than terrible ;)