BuyAWSAccount
FAQ Hub/What is the Cheapest Cloud Provider?

What is the Cheapest Cloud Provider?

For raw compute per dollar, Hetzner Cloud is the cheapest cloud provider, offering 2–3x more compute than AWS or GCP at the same price. Oracle Cloud's always-free tier is cheapest for small workloads. For US/global regions, Vultr and DigitalOcean offer the best value.

Comparing cloud provider pricing is complex because costs vary by region, instance type, storage, and network usage. However, some clear patterns emerge when you look at equivalent compute resources across providers.

For pure compute cost in European regions, Hetzner Cloud is unquestionably the cheapest option among established cloud providers. A Hetzner CX31 (2 vCPU, 8GB RAM, 80GB SSD) costs approximately 5 euros per month. An AWS t3.large (2 vCPU, 8GB RAM) costs roughly $60 per month on-demand — 12x more expensive. Even AWS spot instances rarely bring AWS pricing down to Hetzner's level. Our Hetzner accounts start at $45 for a 5-server limit account, making it the best entry point for European compute efficiency.

For small always-on workloads, Oracle Cloud's always-free tier is truly free — permanently. The 4 ARM Ampere A1 cores and 2 AMD VMs in Oracle's always-free tier have no monthly cost, making Oracle the cheapest option for workloads that fit within those resource limits. Our Oracle accounts start at $40 and provide access to this permanent free infrastructure.

For US and global regions, Vultr and DigitalOcean are typically the most affordable options after Hetzner. A Vultr Cloud Compute instance (2 vCPU, 2GB RAM) starts at $10/month. DigitalOcean droplets of equivalent spec cost similar amounts. Both are significantly cheaper than AWS, GCP, or Azure for equivalent specifications. Our Vultr accounts start at $30 for $200 in credits, and DigitalOcean accounts start at $20 for a free trial.

Linode (Akamai Cloud) is price-competitive with Vultr and DigitalOcean, with Nanode instances at $5/month for 1 vCPU and 1GB RAM. Our Linode account starts at $25 for $100 in credits — an excellent value for budget-conscious deployments.

AWS, GCP, and Azure are the most expensive for raw compute on-demand, but they offer the most comprehensive service catalogs and often work out cheaper for organizations that use Reserved Instances, Committed Use Discounts, or Savings Plans. For organizations that only need simple VPS hosting or specific cloud compute, the alternatives above provide significantly better value.