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VPC is free (and actually, new AWS accounts launch instances by default into a default VPC Amazon sets up for you).

The $0.05 per VPN Connection-hour is only if you want to connect your own network to your VPC. http://docs.aws.amazon.com/AmazonVPC/latest/UserGuide/VPC_VP...

Does the VPC have any external visibility aside from the VPN connections? And if it does, what is stopping you just setting up your own VPN server and bypassing the $0.05/hour rate?

Some do that, but the ~$30/month you're saving is likely eaten up by the cost of setting up and managing it and the software VPN instance you have to run.

One would assume the VPN also has a higher network throughput then any instance under $30.

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