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Looking at the pricing on the amazon site here: http://aws.amazon.com/ec2/pricing/#lightUtilizationRILinux

does it mean Small (Default) linux server only cost $69 for a whole year? likewise $138 for a medium instance for whole year?

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I'm wondering about this too. Or is is 69+ regular hourly charges?

$69 is the upfront fee for a 1-year "light utilization", you pay hourly on top of that at $0.039/hour. Note this is half of the $0.080/hour normal price (non-reserved). If you wanted a dedicated (100% utilization) reserved small Linux instance, it would be $195 setup and $11.71/month (total $335/year) vs. non-reserved at $58.56/month (total $702.72/year). Note that the upfront fee is paid each time you renew a term, it's not really a "one-time" fee like with dedicated servers.

Edit: source: http://calculator.s3.amazonaws.com/calc5.html

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