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Cloud Cost & Pricing

Egress Costs: The Line Item Nobody Provisioned

You choose an instance size. You do not choose an egress bill — it arrives as a consequence of decisions made elsewhere.

Isometric illustration of stepped blocks descending like a falling bar chart beneath a measuring gauge

Compute and storage are provisioned deliberately. Egress is not — it is the byproduct of how your system moves data, which means nobody decides on it and everybody is surprised by it.

Two very different pricing models

Model Providers How it works
Included allowance Hetzner, DigitalOcean, Linode, UpCloud, OVHcloud, Kamatera A large transfer allowance per plan, overage billed modestly
Metered per gigabyte AWS, Azure, Google Cloud, Oracle, IBM, Alibaba Free tier, then per-GB with volume tiers

The gap is large. A VPS plan may include 20 TB of transfer at no extra cost; the same 20 TB metered can exceed the compute cost several times over. For media-heavy workloads this single difference often dominates the total.

Note that Oracle Cloud includes a notably large monthly egress allowance relative to other hyperscalers, which is a genuine differentiator worth checking against your volume.

What is billed, and what is not

  • Ingress — data into the cloud. Free almost everywhere.
  • Egress to the internet — the main charge.
  • Cross-region — billed, sometimes at close to internet rates.
  • Cross-availability-zone — billed on several platforms, in both directions, which surprises people.
  • Through a NAT gateway — a per-gigabyte processing charge on top of egress.
  • Within one zone, private addresses — usually free.
  • To the provider’s own services over a private endpoint — usually free or reduced.

Cross-zone charges are the quiet one. A multi-zone deployment with chatty services can generate significant internal transfer cost that appears nowhere in the architecture diagram.

Where the volume comes from

  1. Media served from the origin. Images and video that should be behind a CDN.
  2. Uncompressed API responses. Enabling compression can cut this by 70 per cent for JSON.
  3. Backups leaving the provider. Necessary, but worth measuring.
  4. Log shipping to an external platform. Volume grows quietly with traffic.
  5. Cross-region replication configured once and never revisited.
  6. Container images pulled repeatedly from an external registry by every node on every deploy.
  7. Scrapers and abusive traffic, which cost real money in bandwidth.

Reducing it

  • Use a CDN. CDN egress is cheaper than origin egress on most platforms, and cached responses skip the origin entirely. This is the single biggest lever.
  • Compress everything textual. Brotli or gzip on HTML, CSS, JavaScript and JSON.
  • Serve modern image formats. WebP or AVIF at appropriate dimensions cuts image bytes dramatically.
  • Use private endpoints for object storage and provider APIs so traffic avoids NAT and internet paths.
  • Keep chatty services in one zone, with redundancy at the service level rather than constant cross-zone chatter.
  • Cache container images in a registry within the same region.
  • Rate limit abusive clients before they consume bandwidth.

Estimate before you commit

A rough calculation prevents most surprises:

  1. Average response size, including assets, multiplied by monthly page views.
  2. Add API traffic: average payload multiplied by request count.
  3. Add file downloads and media streaming, which usually dominate if present.
  4. Add backups and log shipping.
  5. Add 30 per cent for retries, bots and growth.
  6. Multiply by the provider’s per-gigabyte rate, or compare against the included allowance.

Do this for two candidate providers and the comparison often looks very different from the instance-price comparison.

The egress-out clause

Several major providers now waive egress charges for customers permanently leaving the platform, following regulatory pressure in Europe. It typically requires a formal request and applies to a full migration rather than ongoing transfer.

It is worth knowing about if you are planning a move, and it does not change the economics of day-to-day operation.

Common questions

Is a CDN cheaper than serving directly?

Usually, yes, on metered platforms — the per-gigabyte CDN rate is lower and cached hits avoid origin egress. On VPS providers with a generous included allowance the saving is smaller, but the latency benefit stands.

Why is my bill high when traffic is low?

Check cross-zone transfer and NAT gateway processing. Internal traffic between services can exceed user-facing traffic in a microservice architecture.

Does the free tier cover much?

Typically 100 GB per month across most hyperscalers, which covers a small site and nothing more. Oracle Cloud is a notable exception with a much larger allowance.

Do VPS allowances pool across servers?

On some providers yes, so unused allowance on one server offsets overage on another. Check the specific provider’s terms; it materially changes the maths for multi-server setups.

Where to go next

See CDN and caching and hyperscaler versus VPS provider.

Read next

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