Amazon EC2 Economics

Lower TCO than on-premises environment.

AWS is more cost-effective than on-premises environments in both short-term and long-term, and at scale, for both variable and steady-state workloads, while also delivering return on agility and enabling new experiences. In early 2012, AWS commissioned IDC to interview 11 organizations that deployed applications on AWS. IDC discovered that the five-year total cost of ownership (TCO) of developing, deploying, and managing critical applications in AWS delivered a 72% savings when compared with deploying the same resources on-premises or in hosted environments. The findings also showed a 626% ROI over five years.

via Economics.