Amazon, Inc. (NASDAQ:AMZN) Web Services customers now have the option to run cloud applications on their own dedicated hardware. While Amazon’s Elastic Compute Cloud uses virtualization, some customers may prefer dedicated hardware due to regulatory or other restrictions. The Dedicated Instances will be a part of Amazon’s Virtual Private Cloud (VPC) service.
When a customer wants to set up a VPC they can either set up a private cloud or a set-up that includes traditional and dedicated instances. The charge for Dedicated Instances is an hourly “per instance usage fee” or a “dedicated per region fee.” The region fee is $10 per hour irrespective to how many instances an enterprise is running.
The usage fee also depends on where the instance is running, the operating system, and the performance level. As an example, a large instance that runs on Suse Enterprise Linux operating system in North Carolina, it will cost $0.54 per hour.