Dedicated instances on Amazon's EC2 cloud service are never going to be the cheapest option (you'll always pay a premium for dedicated hardware), but they just become marginally less expensive. Amazon has cut its fees for dedicated instances.
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The changes include a reduction in the region fee charged for each instance from $10 to $2 an hour, as well as cuts in hourly fees. As ever, the Sydney region remains more expensive than its US counterparts, but the price cuts are still welcome.