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Comment by Vitaly | Hacker News Reader

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Vitaly·

Now I wander if Heroku prices will follow or if they'll decide to just pocket the difference themselves.

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Does heroku run on the dedicated servers?

Dedicated being different from 100% utilization reserved servers

http://aws.amazon.com/dedicated-instances/ vs http://aws.amazon.com/ec2/pricing/ (which did not get 80% cuts)

I'd think they would employ dedicated instances which they then subdivide to keep their customers as isolated as possible.

Aren't dedicated instances only available in VPCs? In that case Heroku would not use them as all Heroku machines are public.

You can easily make a VPC fully public, or have fully public subdivisions.

I highly doubt Heroku pays list price for their servers. Any public EC2 price change is probably mostly irrelevant to them, other than as a baseline for their negotiations.

Heroku don't use these.

Have been on Heroku for about two years and can't recall a single price reduction in anything. I think it's pretty clear that pocketing the difference in the steady AWS price reductions is exactly what Heroku does.

Disclosure: I work for Engine Yard.

We've dropped our prices a number of times, the lastest a few months ago:

https://blog.engineyard.com/2013/announcing-lower-pricing

And yet hosting a small app on engineyard (with hopes of hitting it big) is still infinitely more expensive than Heroku beyond the 20 day trial .

"infinitely", cool.

We've plenty of customers who migrate to us when they "hit it big". It's no secret that that's where Engine Yard has been positioned for a long time.

The point of us dropping prices was so we could pass value onto our customers.

Yep, infinitely: 0 vs. ~$40 right? Not sure why you downvoted.

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