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Comment on Effectively using AWS Reserved Instancesparent

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It's not unless you depend on a huge amount of other AWS services. Buying hardware and colocating - or even paying month to month to rent servers from a dedicated hosting provider will typically be much cheaper than reserved instances.

Which is likely the reason AWS bandwidth charges are so high. That's their lock-in factor that often makes it infeasible to use cheaper servers elsewhere as long as anything else is on AWS.

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