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Why would I ever choose to use an EC2 dedicated instances as opposed to a non dedicated instance?

You have to pay $2/hour/region if you have any dedicated hosts in that region AND the costs per instances appears to be ~10% higher: http://aws.amazon.com/ec2/purchasing-options/dedicated-instances/.

I am looking for a little more than just: http://aws.amazon.com/blogs/aws/amazon-ec2-dedicated-instances.

Other than cases in which I "have regulatory or restrictions that require physical isolation", are there other reasons to want dedicated? What are examples of non-regulatory restrictions that require physical isolation?

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Regulatory reasons are going to be the primary ones - financial firms, healthcare data, etc.

If you had a system that needed particularly consistent performance, using dedicated instances means you don't have any risk of noisy neighbors on the underlying EC2 host servers.

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In short, when you don't wish to discover that you're sharing the physical hardware with someone like netflix.

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    fwiw; i'm pretty sure netflix actually went to dedicated instances to stop this happening to them.
    – Sirex
    Nov 3, 2014 at 19:24

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