Amazon introduces cheaper EC2 instances

Amazon has added three new instances to its range of cloud-based compute EC2 services. These cater primarily for "modest demands" of continued compute power with random, occasional bursts in performance.

The cheapest instance (T2.micro) comes with one vCPUs with a a baseline performance of 10% of a single core of an Intel Xeon processor running at 2.5 GHz (up to 3.3 GHz in Turbo mode) and 1GB RAM, amounting for 6 CPU credits per hour.

Prices start from $9.50 (about £6, AU$11) per month or $0.013 (about £0.008, AU$ 0.018) per hour, doubles for the next tier (T2.small) and quadruples for the last one (T2.medium). Performance and system memory allocations follow the same trend for those latter tiers as well.

24 hours

CPU credits have a lifespan of up to one day and can be accumulated and used to expedite workloads towards the end of the 24 hour period.

Jeff Barr, Chief Evangelist for the Amazon Web Services, said that the new instances provide with better performance at half the cost making it a no-brainer swap.

The new T2 instances are likely to be a hit for companies offering cloud-based Office-like productivity applications or other lightweight 2D workloads.