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little confused as to how the instances work. if I run a windows server instance, and say nobody hits the website, is the instance still running on their end or does it shutdown ever

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Yes, the instance is always running. It's just like a normal server and it doesn't matter if it's working or just idling.

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so idling is free? – user2659 Dec 4 '09 at 13:35
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No, you're paying not for the CPU time, but the time the server is running. So only when you shut down the server it stops costing you money. – Tomas Markauskas Dec 4 '09 at 13:59
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thomas is right on this one

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Then upvote his answer, don't add a meaningless answer. – Sam♦ Dec 4 '09 at 10:26
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