Why do people always compare EC2 _On-Demand Instances_ cost to classic hosting cost?
The actual cost for a planned _Reserved Instance_ on EC2 is much lower and is a much more realistic scenario for hosting : it cost about 27$/month for a 3 years reserved small instance (425$/36 months + 14.64$), not 60$/month.
No one knowing it will use an instance 100% time should opt for On-Demand instance, because yeah, it costs a lot.
https://aws.amazon.com/ec2/#pricing http://calculator.s3.amazonaws.com/calc5.html