This is essentially what EngineYard does with their Cloud offering and how they've been able to reduce prices recently: We’re able to provide this new lower pr

This is essentially what EngineYard does with their Cloud offering and how they've been able to reduce prices recently: We’re able to provide this new lower pricing because of a new capability from Amazon Web Services that allows us to group all our customer accounts into a single billing entity with Amazon. So, we’re now able to use a single virtual pool of reserved instance capacity from Amazon, and pass along these savings to customers. This means all of our customers get to reap the benefits of reserved instances without the need to pay the reserved instance costs up front. No other cloud platform provider has been as aggressive as us in slashing prices as our cost goes down. FROM: http://www.engineyard.com/blog/2010/announcement-engine-yard-cloud-price-reductions/ http://www.engineyard.com/blog/2010/announcement-engine-yard...