How we price instances, explaining changes to established rates, and the availability of discounts.
Pricing a physical server is really the sum of its parts - from switching and cables down to the actual chassis. Of course, the most important cost is associated with the physical assets of the server - the processor, RAM, disks, etc.
At Packet, we try to keep pricing simple, with clear hourly rates and discounts for committed (monthly or annual) usage. No multi-tenancy means that you get 100% access to all of the resources in a server - no sharing!
While the price of these components from our suppliers vary substantially over time (not to mention the wildly different cost of power and datacenter space throughout the world) we do our best to smooth out the difference and keep prices stable.
Adjustments to Established On Demand Rates (Feb. 2018)
Due to changing costs and other factors, such as the introduction of new configurations, we sometimes do have to adjust our prices. Effective February 1st, 2018 the on demand price for a few configurations changed as follows:
- t1.x86.small increased to $.07/hr from $.05/hr.
- x1.x86.xsmall was reduced 20%, to $0.40/hr. Yippee!
- m1.x86.xlarge increased to $1.70/hr.
Note: All contracted rates will remain in place. If you would like to discuss discounts for committed usage, please contact us via email@example.com.
Why is t1.small Going Up?
t1.small is one of our favorite creations, and Packet users seem to agree.
Because it is our smallest instance, it is widely used as a development or test machine. It is invariably the first machine that new users spin up. And for 8GB of RAM and four cores on a dedicated machine, it deserves its "Tiny but Mighty" nickname - matching the specs of VM's twice its price at other cloud providers.
Unfortunately, at $.05/hr we lose money on it. Doh! With a fast-growing amount of t1.small usage per month, we have made the choice to adjust prices up by $.02/hr to allow us to continue to invest in this server line.
Why is m1.xlarge Going Up?
When the m1.xlarge was released, it filled a massive gap for users looking for either more cores or more RAM. As such, it has become our biggest seller by far.
However, we've found that most users either want it for the RAM, the cores, or the disk space - rarely all three at once. This has become inefficient due to the skyrocketing price of RAM in 2017, which we have absorbed despite booming increased sales.
With the introduction of our new AMD EPYC ($1.00/hr) and Intel Scalable ($2.00 / hr) systems, we feel we are better positioned to address users who need either the cores, or the RAM.
Like most other companies, Packet offers aggressive discounts for term commitments. While exact discounts vary by volume and other factors, average users can expect to save 20% or more.